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What members should know about the Service Charge

What is the Service Charge and why is it on my bill?

The Service Charge is a monthly fee that is charged to all Alger Delta members to help cover the fixed costs of supplying electricity. Poles, wires, cross arms, transformers, hardware, trucks, vehicles, insurance, interest, and taxes are just a few examples of costs that Alger Delta must pay regardless of how much or how little electricity is used by our members. These costs, which are reasonably predictable, are distributed fairly through a monthly service charge.

Who determines the service charge?

Service charges and rates are determined through a collaborative effort between the cooperative’s members, the Alger Delta board and management, and advisors or consultants with special expertise in rate development.

How much is the service charge?

The board of directors approved a service charge of $35 per month/per meter for residential, seasonal, and small commercial members.

What is a Power Cost Adjustment Clause (PCAC)?

A Power Cost Adjustment Clause (PCAC) is a way for a utility to pass on adjustments to their wholesale power costs, whether they be positive or negative. PCAC adjustments are passthrough costs, and the utility does not make any extra revenue from them. They are needed to offset some larger than budgeted power costs to help keep Alger Delta financially stable. 

What is the energy charge?

There is a line on your bill that shows the previous meter reading, the current meter reading, and the kWh (kilowatt-hour) Usage. The number under the heading kWh Usage is the number of kilowatt-hours consumed between the two reading dates. The number of kWH’s is multiplied by the energy rate to determine the energy charge.

What is the energy rate?

It is the charge per kilowatt-hour that you pay for electricity. For residential and seasonal members the energy rate is $0.133 (13.3 cents) per kilowatt-hour. There are other energy rates for other types of members. To find the rate, simply multiply the energy charge by the number of kWH’s shown on your bill. Another way to find the rate is to call Alger Delta and speak to one of our Customer Service Representatives.

Where can I find out more?

You can learn more about rates, tariffs, and service charges by calling us at 428-4141 or emailing