Central Electric Cooperative’s board of directors and employees wish our members and their families a very Merry Christmas and a blessed 2023. In the spirit of giving, your cooperative is passing on a gift in the form of a bill credit to our members this month.

Central Electric Cooperative is a not-for-profit organization. Any profits earned, also known as margins, are allocated to members as capital credits in proportion to the electricity you purchased during the year. The cooperative uses capital credits to fund operations, and it later returns this capital to the membership. Capital credits reflect your ownership or investment in Central Electric.

This year, the board approved a $600,000 capital credit retirement and is passing through an additional $652,027 capital credit retirement received from East River Electric and Basin Electric Power Cooperative. You should have seen a credit on the electric bill you received in December. That means $1,252,027 will stay in our members’ wallets in 2022.

Management presented the 2023 budget to the board in November. The budget includes forecasted energy sales, projected costs to maintain and operate the system and a list of additional assumptions expected for 2023.

Central Electric completed a cost-of-service study that supports the forecasts and projections in the budget. The study evaluated projected revenues for each type of electric service, evaluated related costs to provide service and it provided strategic direction for the future. The cost-of-service study results and preliminary budget indicated a shortfall of $434,000 for 2023 and further shortfalls in 2024-2026 if no rate changes were implemented.

While our goal is to maintain stable electric rates, we must also maintain a reliable electric system. Maintaining an aging electric system comes with a cost. Central Electric invests an estimated $6 million in system improvements annually so we can keep your lights on. This investment, compounded by inflation and higher interest rates, is impacting the cost of operating the cooperative.

We are proud of our employees who work hard to control costs, and the fact that electric rates have remained the same since 2019. However, a rate adjustment is needed for the cooperative to continue providing safe and reliable electric service while maintaining financial integrity.

Adjustments include a $2 increase in the facility charge on all accounts, a $2 facility charge on electric heat submeters, and a minimal increase of $.003 on residential and farm kilowatt hours purchased over 1,200. These adjustments add up to a modest 1% overall increase in total revenue. The impact of the adjustments on individual bills will vary for every member. Central Electric will implement rate adjustments on electric bills received in February 2023 for energy consumed in January 2023.

The board, employees and I are thankful for the opportunity to serve you. We will continue working hard on your behalf to provide safe, reliable and affordable electric service. Have a blessed and joyful holiday season. Until next month, stay safe!