Rates help maintain a healthy cooperative

Cost-of-service study results

Posted on Apr 08 2023 in Southern Indiana Power

Southern Indiana Power recently completed a cost-of-service study to evaluate the cost of providing electric service to you, our member-owner. Southern Indiana Power is a not-for-profit organization and that means we operate at cost to deliver safe, reliable and affordable power to you. Our employees and directors work hard to keep your electric rates as low as possible.

The results of the cost-of-service study were favorable, showing there is only a small overall rate increase needed. This is despite seeing continued cost increases for our basic supplies like poles, line hardware, wire and transformers. The study analyzes the cost of providing service to each member with the theory that whoever causes the cost should pay the cost. The study did reveal a need to make a few slight modifications on how Southern Indiana Power recovers our cost from you.

The facility charge for our general service members will be increased from $29.50 per month to $32.50. This change will increase the average member’s bill (1000 KWH) by approximately 2%. 

Unfortunately, the Wholesale Power Cost Tracker from Hoosier Energy will also be increasing approximately 4% on April 1. The energy charge will be increased from 9.9 cents per KWH to 10.49 cents per KWH. 

Hoosier Energy uses the Wholesale Power Cost Tracker to recover the variable costs used to generate electricity. These costs are for commodities like coal, natural gas and fuel. Over the past 12 months, these commodities have been very volatile due to rising demand and our nation’s inability to increase supply. 

All the changes will become effective April 1, 2023, and you will see them on your May electric bills.

If you have questions, please contact us at 800-323-2316 or online at southernindianapower.com. Southern Indiana Power’s mission is to provide safe, reliable and affordable power while improving the quality of life for our members.