By Ken Schlimgen, General Manager
Electricity is vital to nearly everything we do — so essential that we often take it for granted and rarely think about how it is produced and delivered to our homes and businesses. Behind the scenes, a team of dedicated experts works around the clock to anticipate how much electricity is needed before we even turn on a light or appliance.
We are all dependent on the electric grid, and ensuring the right amount of electricity is produced to meet our needs is a complex process. It involves accurately forecasting energy demand, planning for adequate capacity and securing enough resources to cover all our needs.
Electricity supply and demand are managed through a market where electricity is bought and sold, much like other goods and services. The supply of electricity fluctuates throughout the day as demand changes due to our habits, weather conditions and other factors. For example, we know that electricity demand peaks in the morning as we start our day and in the evening when we return home and use appliances. Similarly, demand surges during the hottest and coldest times of the year.
During these high-demand periods, the cost of electricity is at its highest. At these times, we face a choice: pay the higher price for electricity or limit the number of appliances we use and minimize electricity purchases during peak price hours.
In 1984, your cooperative made a forward-thinking investment in a load management system designed to reduce the demand for electricity during peak pricing times. This system relies on remote switches that can temporarily turn off certain appliances and equipment. Most importantly, it is supported by thousands of our members who voluntarily allow these switches to be installed in their homes, connected to their water heaters or air conditioning systems.
Our remote switches are now decades old, and we are in the process of replacing them. If you currently have a remote switch in your home, we will reach out to you by mail with instructions on how to schedule an appointment for one of our employees to install the new switch.
Since your cooperative has thousands of these switches in place, this replacement process will take several years to complete. If you are unaware of having a remote switch, it may be because a previous homeowner had it installed. Please remember that participation in this program is voluntary, and you have the option to continue or opt out of this cost-saving initiative.
We estimate that member participation in the load management program allowed your cooperative to save approximately $1 million on electricity costs in 2024. As electricity demand grows, prices are expected to continue rising, meaning the savings from our load management system will only increase.
By participating in the load management system, you’re helping yourself, your neighbors and the entire cooperative. Together, we can minimize rate increases, reduce the environmental impact of our electric system and enhance reliability.
2025 Electric Rates
The wholesale cost of electricity is increasing in 2025. Central Electric is seeing a substantial increase in the cost of line replacements, vehicles, equipment, tools, labor and materials. Combined, these increases have prompted the need to adjust electric rates on January 1, 2025. The adjustments include a 7.5% increase in energy rates and allow the cooperative to meet the financial requirements put in place by our lenders, including the USDA Rural Utilities Service.