Pioneer Electric Cooperative will review a proposed rate adjustment during its monthly board meeting February 25 at 8:30 a.m., a meeting that is open to the public. The discussion will focus on a modest change to one specific component of electric bills, according to information provided by Pioneer Electric Assistant CEO and CFO Chantry Scott.
Pioneer Electric operates as a not-for-profit cooperative, meaning it provides service at cost to its members and does not operate for profit or answer to shareholders. Scott noted that when rate changes are proposed, they are intended to help cover operating expenses, maintain reliable service, and meet debt obligations. In recent years, Pioneer has faced inflationary pressures, supply-chain disruptions, and increased costs tied to major infrastructure projects, including the Hamilton County transmission line and substation, which were completed to meet growing capacity needs in the service area.
The proposed adjustment would apply only to the Energy Demand Charge, which allocates costs associated with building, maintaining, and upgrading electrical infrastructure. The proposed increase is 1.4 percent. Importantly, the proposal does not affect the Energy (kWh) Charge, which is the cost based on the total amount of electricity used during a billing period.
Scott explained the Energy Demand Charge reflects the rate at which electricity is used, not the total usage. It is calculated based on the highest level of demand at any point during the month. Because of this, members have some ability to manage their demand charges by spreading out the use of energy-intensive appliances, adjusting thermostats slightly, and practicing general energy conservation such as unplugging unused electronics, turning off lights, and weatherizing homes or buildings.
Members interested in learning more about the proposed change or offering input are encouraged to attend the February 25 board meeting.
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