The leadership at Kankakee Valley REMC is committed to being fiscally responsible while balancing the membership’s expectations of service reliability and affordable rates. From time to time, the board of directors reviews the rates to ensure that they are (1.) producing sufficient revenue to deliver reliable electric service and (2.) assure the cooperative maintains a solid financial condition.
A recent review of the rates identified that the co-op’s current rate structure and budgeting practices are dependent on the weather and any changes to the electric habits of the member-consumers. In addition, due to the increasing costs, we are collecting only 59 percent of the fixed costs through the facilities charge. The cost of doing business has been increasing through the years, and we have been able to offset those increases with margins from energy sales.
To ensure the rate structure covers the overall business costs, the board of directors believes the cooperative should collect 100% of the fixed costs through the facilities charge. This eliminates the variability and the co-op’s dependence on energy sales. To create a system where we only collect what we need to operate, we must realign our rates.
The rate realignment will go into effect on the bill you receive in January. Residential member-consumers will see a rate decrease from 0.09699 cents/kWh to 0.08174 cents / kWh. In addition, the facilities charge will increase from $30/month to $48.50/month. The change in the facilities charge will affect all rate classes, not just the residential member-consumers. To see how the rate realignment will impact your bill, visit kvremc.com/resources/rate-calculator.