Power cost drops 11 percent
Power cost drops 11percent

Power cost drops 11 percent

One of the many benefits of being a member of a not-for-profit electric cooperative is receiving power at cost.

During March and April, members saw the cost of power for 1,000 kWh decrease to $130. The cooperative is able to lower the cost of power due to decreases in the price of natural gas, which Seminole Electric Cooperative (Clay’s wholesale power provider) uses to generate a sizable portion of the wholesale electricity it provides.

The PCA is a separate line item on each Clay Electric statement, which reflects the increases/decreases in the co-op’s cost of power. The cost of wholesale power is more than 70 percent of Clay’s total expenses. When the cost of power is greater than the amount included in the base rate, the PCA is a charge. When the cost is less, it’s a credit.

A rate study indicated the cooperative should increase its Access Charge to recoup more of the fixed costs associated with building and maintaining the distribution system. The Access Charge is being increased to $29 beginning in April. The Access Charge is the component of a member’s bill that recovers some of the fixed costs that come directly from serving an individual member, regardless of how much electricity is used. These costs include the cost of the meter, wire and other equipment used to deliver electricity to the home or business, as well as meter reading technology and billing expenses. All utilities have some type of an access charge.