October bills reflect Rate Change

Maximum increase $4/month – No increase to Kwh charge.

This is notification that a rate change has occurred with the October 2008 bills. The last change was nearly 7 years ago. The Board of Directors of your Cooperative approved the following changes:

• Regular Rate increase $4/month.
• Yard Lights increase $0.25/month.
• Three Phase Rate increase $5/month.
• Kwh charges remain the same!
• Seasonal Rate (billed twice/year) converted to Regular Rate (billed monthly).

The Generation and Transmission cost remains at 6.5cent/Kwh. Estimates from our power supplier, Allegheny Electric Cooperative, indicate the next increase to this cost would be in 2011 and is estimated to increase a bill 10 -15% which is no way near the 40 to 60% increases the investor owned utilities are putting into place. This part represents about 65% of your bill.

Today’s rate change occurs with the Customer Charge and is for the increased operating costs of your Cooperative. Increased material costs to buy poles, wire, transformers, fuel for vehicles and almost everything we use daily has never increased this much, this fast. The Customer Charge on the bill is used to pay for these items and 100% of these dollars stay at New Enterprise for our local operation.

The Customer Charge increases $4/month ($48/year) for residential accounts and $5/month ($60/year) for three phase accounts. The yard light monthly rate increases $0.25 making it $7.75/month. So regardless of the amount of electricity you use each month, each member knows exactly how much the bill will increase from the prior year if the same amount of electricity is used. A residential bill increases $4/month – no more or no less.

The Seasonal Rate (billed twice/year and read by the Cooperative) has been eliminated and becomes a Regular Rate with monthly billings to members. These former Seasonal accounts now have automatic meter reading devices installed within the meter that transmit readings to the office monthly. You do not have to read the meter for these former Seasonal accounts.

Don’t forget the possibility of some energy conservation changes at your home that could offset some or all of the $4/month increase. Replacing older appliances with new Energy Star efficient appliances or weather tightening your doors and windows can go a long way in using less Kwh’s. Most homes can make adjustments that will easily save a few dollars each month in energy use and offset most or all of this modest increase.

The last increase for operating costs at your cooperative was in 2002 and we believe this $4/month increase should last for a number of years. Allegheny Electric Cooperative is expecting to increase the Kwh charge in 2011. Beyond 2011 new Generating plants and transmission lines will be built and these costs will be reflected in future rates to everyone in the country.

Electric Cooperatives in Pennsylvania are in a much better position than investor owned utilities when it comes to future electricity costs. The modest increase put in place today will keep your Cooperative healthy and is no where near the cost increases we all have seen for practically every other product we buy.