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At Meeker Cooperative, we understand that the cost of electric service isn’t always easy to understand. With a rate increase ahead of us, we wanted to take some time to further explain one of the lesser-understood elements of your bill – the Fixed Charge.

At its most fundamental level, the Fixed Charge is a way to recover the basic cost of electric service regardless of how much energy is consumed. 12-24-404 Even if you use just one kWh of electricity while your neighbor uses 1,000 kWh, the cost to build the line, maintain the distribution system, and deliver electricity to both of you remains the same.

This monthly fee covers various costs related to the infrastructure and equipment necessary for providing electric service. This includes things like owning, maintaining, and managing the meters, transformers, distribution lines, substations, etc. Additionally, costs are incurred for repairing and replacing damaged lines, clearing the Right-of-Way, and maintaining vehicles, tools, inventory, and buildings. As you can imagine, these expenses accumulate quickly.

But it’s not just about infrastructure. There are also costs associated with our business functions. Calculating your bill, sending it, and processing payments all come with their own expenses. Our computer and telephone systems, accounting, financing, collections, dispatching, customer service, and communication also require investments. And let’s not overlook the dedicated and qualified people employed at Meeker Cooperative who need to be compensated.

While the list of costs could go on and on, the underlying message remains the same: none of these costs change based on you or your neighbor’s energy usage. The facility charge ensures that each member pays a fair share of the cost to access electric service while the energy charge is just that – the purchase price for the amount of energy you use.

In summary, no matter how much or how little energy you use each month, there are certain costs that must be recovered. Our goal is to recover those costs in a fair manner which is why we have a monthly Fixed Charge.

Last month we announced that after careful consideration, the Board of Directors has approved an

overall increase of 3.2% across all rate classes that will go into effect on April 1, 2024; you can expect to see a change in the Fixed Charge on your bill. 27-30-402 Detailed information and a breakdown of the upcoming rate increase will be shared in the March Pioneer.

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