2024 Rate Adjustment
Important Information About 2024 Rate Adjustment
1. Why is Wise Electric Cooperative (“Cooperative”) implementing a Rate Adjustment?
- The Cooperative’s last Rate Adjustment was a 2.83% in June 2017.
- Based on a Cost of Service Study performed by Cooperative Finance Corporation, (a third party consultant), based on the 12/31/2021 Adjusted Test Year, a Rate Adjustment was necessary for the financial health of the Cooperative.
- Inflation of equipment, materials, supplies and labor along with the financial ramifications for Wise Electric because of the Brazos bankruptcy have prompted the adjustment.
2. Why are there different rate adjustments among the Rate Classes?
- Based on the Cost of Service Study performed, each rate is benchmarked according to its particular performance, resulting in different rate changes within each class.
3. What is the overall impact of the “base power cost” rate change?
- This will result in a $0.003 (three-tenths of a cent) increase per kWh to all rate classes with the exception of the Industrial rate class (which will only have a demand charge increase).
- Below is an example bill that shows the increased customer service charge and base power cost adjustment for 1500 kWh usage on a residential rate.
4. If the last rate increase was in 2017, why has my bill increased since then?
- The cost of purchased power and transmission services accounts for 65-75% of your total bill in any given year. These are charges that are passed through at no additional cost to members and are the charges that have increased since 2017.
- This pie chart represents the breakdown of how your dollar was spent last year.
5. What is the Customer Service Charge?
- The customer service charge is a static charge in that particular rate class that every member pays on a monthly basis. This charge is collected for the maintenance and operation of the Cooperative’s distribution lines and metering system.