Rate Adjustment Results in Lower Bills for Typical Homeowner
For Immediate Release
Contact: Renee Whitener, Director of Public Relations, Blue Ridge Electric Membership Corporation, (828) 758-2383, Ext. 3213; Pager: 1-800-471-1323; or E-mail: Renee Whitener
Lenoir, North Carolina (September 7, 2007) — The typical household electric bill will be a little lower as a result of a rate adjustment announced this month by Blue Ridge Electric Membership Corporation. The new rates take effect on bills printed after October 4.
The typical household will see a monthly savings of $2.47, which will help those households reduce their average electric bill to $99.91.
The ability to reduce the typical household bill is being credited to the savings generated from new wholesale power supply agreements announced last year with the cooperative’s new power supplier, Duke Energy.
The wholesale power negotiations were led by Chief Executive Officer Doug Johnson, said Blue Ridge Electric President Kenneth Greene. Johnson continues to lead the effort of managing the cooperatives wholesale power portfolio to ensure a highly reliable supply and stable cost for electricity to serve the members of the cooperative.
“As a community based electric cooperative, our mission is to benefit members with the most affordable cost possible for electricity, delivered with the highest reliability and member care,” said Johnson.
The rate adjustment was determined as a result of a cost-of-service study conducted over the past several months. A cost-of-service study, which is conducted periodically by utilities, analyzes factors that influence the cost of providing electricity: the cost of poles, wires, substations, and the distribution and transmission systems necessary for the infrastructure to deliver electricity to homes, businesses, schools and industries, and other support such as billing, accounting, and customer service. The study also includes the cost to purchase or produce electricity.
Blue Ridge Electric’s recent study also revealed a need to adjust the basic facilities charge which is included in the total electric bill.
Like many other electric utilities, Blue Ridge Electric is making major reliability investments all across its system in order to replace an aging electric delivery system and to be able to meet growing energy demands now and in the future.
Even with this adjustment to the basic facilities charge, the total rate adjustment still provides the typical residential member with a slight decrease in their overall monthly bill due to the savings generated by the wholesale power savings. However, members with very low or seasonal usage patterns may experience a slight increase in their total bill due to this change. Because little or no electricity is being used by these members, it has become difficult for the cooperative to recover the appropriate “fair share” amount from this group of members. Yet while seasonal usage members may use electricity only sporadically or in very small amounts, the facilities and services must be in place to meet their electricity needs at any time and they benefit from this availability and reliability like all members. Therefore, the change in basic facilities charge helps ensure all members are paying their fair share to ensure reliable service.
Look for more details on the rate adjustment in the September member newsletter, The Enlightener, which is mailed with each electric bill.
