As we get into autumn, with harvest in full swing, it’s a good time to reflect on the stability and reliability of the services we provide at Clay Electric Co-operative. We’re committed to delivering safe, affordable and exceptional service to our member-owners, but like many utilities across the nation, we’re navigating challenges such as fluctuating energy market costs, infrastructure upgrades and regulatory changes. This month, I want to address an important update regarding our rates, based on a comprehensive Cost-of-Service Study we conducted earlier this year in partnership with our lending provider. This study, which we perform approximately every five years, ensures that our rates accurately reflect the true costs of providing service to different member classes, promoting fairness and sustainability for everyone.

First, let’s talk about the Service Availability Charge, formerly referred to as the Facility Charge, which is a fundamental part of your monthly bill. This is essentially a base fee that covers the fixed costs required to maintain and deliver electricity to your specific location, regardless of how much energy you actually use in a given month. It helps fund the infrastructure and resources that keep our system running smoothly — resources like power lines, poles, transformers, substations, linemen, trucks, equipment and ongoing maintenance. These elements are in place 24/7 to ensure power is available whenever you need it, even if your usage is low or zero. Without this charge, the cooperative couldn’t sustain the grid that serves our rural communities. Effective on your November bill for October usage, we’re adjusting this Service Availability Charge upward by $3 for all accounts across every rate class. This modest increase helps us keep pace with rising operational costs while continuing to invest in system reliability, such as the pole replacements, conductor upgrades and vegetation management we’ve been prioritizing.

In addition to this across-the-board adjustment, the Cost-of-Service Study revealed that certain rate classes needed targeted updates to better align with their actual cost to the cooperative. Specifically, our All Electric and Grain Drying rates will see a small increase in their energy charges. For All Electric members, who rely heavily on electricity for heating, cooling and other high-usage needs, this adjustment ensures the rate more accurately covers the demands placed on our grid and generation resources. Similarly, for Grain Drying operations, which often involve seasonal spikes in high-demand equipment usage, the updated energy charge reflects the specialized infrastructure and capacity required to support these essential agricultural activities. These changes are not arbitrary; they’re data-driven from the study. By fine-tuning these rates, we ensure no single group of members subsidizes another, maintaining fairness while supporting the cooperative’s financial health.

Finally, we’re introducing a new Power Cost Adjustment (PCA) charge on members’ bills. This PCA will pass through a portion — specifically half — of the fluctuating costs we incur from our Generation and Transmission (G&T) cooperative, Southern Illinois Power Cooperative (SIPC). SIPC supplies our power through a diverse mix of sources, including coal, natural gas, wind, solar, hydro and market purchases, and they face variable expenses related to fuel, generation and market volatility. The full PCA we receive from SIPC each month can go up or down based on these factors. By passing through only half the charge to our members, we’re absorbing the rest to minimize the impact on your bills. This approach helps stabilize rates over time when the electric industry is rapidly changing.

We understand that any rate adjustment can feel challenging, especially in today’s economic climate, but these changes are essential to keeping our cooperative strong and reliable for the long term. They support ongoing investments, like the 205 poles set and over 6 miles of new wire installed so far this year, which contribute to our impressive 99.94% service availability rating.

Thank you for being a valued member of our cooperative. Be sure to keep an eye out for your member number in the center section of this magazine. There are three member numbers hidden within the pages of Clay Electric News. If you spot your number and give us a call, you will win a $5 discount on your next bill!