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From the Manager June 2016

Increasing federal environmental regulations and margin shortfalls attributable to lower energy demands have resulted in a deficit toward our wholesale power provider’s ability to meet its financial requirements. As a result, Southern Illinois Power Cooperative is requiring an increase in rates to its member cooperatives. Clay Electric is one of those members.

    Your cooperative is not-for-profit, and as such operates on very tight margins. Because of that fact, this unexpected rate increase from SIPC leaves us with little choice but to raise our distribution rates to cover the shortfall. 

    I want you to know, this decision was reached only after much consideration by your board of directors, and management staff. In order to minimize the impact of the rate increase, we have undergone cost-cutting measures here locally which include, but are not limited to, foregoing some of the construction work plan. 

    It’s never easy to say we need more working capital, but in the current regulatory environment we are facing, and the apparent “war on coal” by the current administration and the EPA, I fear these types of occurrences will become more frequent. That’s why it’s so important you keep your legislators informed on how some of the proposed legislation currently being considered can have an adverse reaction upon our rural communities. 

    That said, here is the path we are taking forward in the short run:

    At the regular monthly meeting held April 25, 2016 it was determined that there will need to be an increase to Clay Electric Members minimum monthly fixed fees of $1.50 and an increase in rates of 1.5 percent. The chart below shows samples of how this will impact your future bills.

    The new rates will take effect May 1, 2016 and will be reflected on the June 2016 bill. 

    I want to close by saying, please get out there and vote. Let your voice be heard. Only by working together can we ensure reliable, affordable, electricity for ourselves and future generations. Once again, we are not anti-renewables. We are not anti-solar. We are not anti-wind. We are simply pro-common sense.

Old Rate 1

 

New Rate 1

 

Fixed charge

$33.00

Fixed charge

$34.50

First 1000 kWh 

.12600 per kWh

First 1000 kWh 

.12789 per kWh

All kWh over 1000

.08950 per kWh

All kWh over 1000

.09084 per kWh

 

Table of Usage and Costs (Rate 1)

Monthly kWh usage

Old Rate $

New Rate $

Difference $

      0 kWh

33.00

34.50

1.50

  250 kWh

64.50

66.47

1.97

  500 kWh

96.00

98.45

2.45

  750 kWh

127.50

130.42

2.92

1000 kWh

159.00

162.39

3.39

1500 kWh

203.75

207.81

4.06

2000 kWh

248.50

253.23

4.73

2500 kWh

293.25

298.65

5.40