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- The fixed expenses are currently covered by the access charge and a variable rate called an energy delivery charge. The energy delivery charge is dependent on the volume of electricity sold to help cover the expenses the access charge falls short on covering.
- Historically, the cooperative has not been able to recover the fixed costs of our plant investment in the fixed monthly access charge. The remainder is currently recovered in the variable per kWh charge.
- Flattening the variable rate and shifting that cost over to the fixed access charge will more equitably distribute the overall cost of electric distribution service across the cooperative’s membership.
- As energy efficiency measures and technology are deployed, over time a member’s energy usage will start to decrease, in turn, the Cooperative will not recover the fixed costs associated with owning and operating distribution plant when the member needs it.
