The staff and Board of SIEC have been working on adjusting our rates for the last several months and at the March 2018 board meeting, the Board adopted a rate increase, effective April 1, 2018 (which will begin with electric bills due in May 2018), that will raise our overall revenue from members approximately 6%.
At our annual meeting in August 2017, we told members that the current rates, which have been in effect since February 2012, would be increasing during the spring of 2018, and additional notices have since been in the JAMUP during 2018. The main reasons for the increase include:
- A 5% increase to SIEC in wholesale power costs that was effective January 1, 2018 (wholesale power cost is about 60% of our total operating revenue).
- The cost of materials and supplies affecting our operations, and maintenance expenses, administrative expenses such as insurance, various taxes, postage and technology costs all increasing.
- Declining kWh sales and revenue since our February 2012 rate adjustment.
- Our 2017 Operating Margins were a loss of just over $(219,000), which obviously is inadequate to comply with loan requirements.
To maintain certain required financial ratios, our current rates have to be adjusted.
SIEC’s goal every day is to provide safe, adequate and reliable electric service to our members as economically as we can. Please click here for more information.