The fixed charge is designed to recover the basic cost of providing electric service, independent of how much electricity is used. These are the costs Meeker Energy incurs to ensure electric service is available to every member safely and reliably, every hour of every day.
If one member uses very little electricity and another uses significantly more, Meeker Energy still incurs many of the same costs to serve both. The fixed charge helps ensure these shared system costs are recovered fairly.
Why the Fixed Charge Is Independent of Energy Use
Whether you use one kilowatt-hour of electricity in a month or one thousand, Meeker Energy must still build, operate, and maintain the electric system that delivers power to your home or business.
That includes the cost to:
- Construct and maintain the distribution system
- Keep equipment energized and ready
- Monitor the system and respond to outages
- Provide customer service and billing
These costs exist regardless of monthly usage, which is why they are collected through a fixed charge rather than the energy charge.
What Are Those Monthly Costs?
Equipment and Infrastructure
Meeker Energy’s electric infrastructure begins at its substations, where power from high-voltage transmission lines is stepped down to levels safe for distribution. From there, electricity moves across miles of distribution lines, both overhead and underground, supported by poles, wire, and buried cable. Transformers are located throughout this system, working alongside lines and equipment to help manage voltage as electricity moves across the grid.
This infrastructure requires ongoing inspection, maintenance, and right-of-way clearing, and must be repaired or rebuilt after storms to restore service safely and reliably. Electricity ultimately passes through your electric meter, which carries ongoing costs to own, maintain, and read, before entering your home to power daily life.
In addition, trucks, tools, inventory, safety equipment, and facilities are needed to support daily operations and emergency response.
Business and Service Functions
Providing electric service also involves essential business functions, including billing, payment processing, computer and phone systems, accounting, financing, dispatching, customer service, and communications.
The fixed charge helps support the skilled, qualified employees who design, operate, maintain, and protect the electric system and serve our members every day.
The key point is this: these costs do not change based on how much electricity is used in a given month.
Separating fixed system costs from energy charges allows Meeker Energy to more accurately assess and recover the true cost of providing service. This helps ensure all members contribute fairly to maintaining the electric system, while energy charges continue to reflect individual usage. The fixed charge supports a portion of access to safe, reliable electric service. The energy charge reflects the electricity you consume. Together, they allow Meeker Energy to deliver power equitably and responsibly today and into the future.