Rate alignment: How will it impact you?

Posted on Jan 15 2023 in Southeastern Indiana REMC
Keith Mathews
General Manager

Over the last few years, we’ve all noticed increases in the prices we pay for goods and services. Southeastern Indiana REMC is not immune from price increases on the things essential to operate your cooperative. Our power supplier, Hoosier Energy, is having a rate realignment, which will result in an increase in power costs for Southeastern Indiana REMC. 

An increase in your facility charge will go into effect for electric use beginning April 1. The overall rate increase for an average residential member is expected to be in the 2%-4% range. 

The monthly facility charge helps finance the necessities required to provide electricity to each service location — whether any electricity is used or not. 

The facility charge helps pay for:

Wire, poles, meters and other equipment needed to build and maintain the electric distribution system. 

Labor to build, maintain and repair the distribution system; to clear and maintain the 3,200 miles of right-of-way, and other day-to-day business functions.

Costs incurred for property taxes, insurance, interest, etc. 

Even if we do not sell a single kilowatt-hour (kWh), we still have the expense of maintaining the electric facilities and operating the cooperative. 

Your board of directors closely monitors our costs and has made the decision to approve the rate increase, based on the recommendation of the rate consultant. Before making this tough decision, an updated cost of service study was completed. 

As a not-for-profit electric cooperative, we design our rates to reflect the costs of providing electric service to you, our members. This increase to member-owners reflects our actual cost of doing business. While electricity is still a great value compared to other commodities, we strive to keep electricity safe, reliable and affordable for our member-owners. We hope that you will understand the need for this increase, and we thank you for being our valued member