Rate Increase to take effect September 1, 2023

Union County Electric Cooperative members will notice a change in their monthly bill in October. Most of this increase is due to the increased cost of materials, supplies and equipment that we have seen in the past several years. As I’ve mentioned in prior editions of the Cooperative Connection Magazine, we have seen dramatic increases in our costs for the materials needed to provide and maintain a safe and reliable electric system.

Beginning with bills generated in October, for your September usage, UCEC will increase the rate per kWh and facility charge. The impact of the rate increase will vary based on your usage patterns. The average residential member will see an increase of approximately 8.5%. Members with higher usage will see a slightly higher increase.

Raising rates is not something that any board of directors likes to do. We have done a great job in recent years in managing our costs. We have found ways to increase efficiency, helping absorb and delay much of the cost impact. Unfortunately, a rate increase has now become a necessity for the cooperative to maintain our current level of reliability and service. Most rate classes last saw an adjustment 7 years ago, in 2016. A few rate classes haven’t seen an increase in over a decade.

Union County Electric continually looks for ways to operate more efficiently and keep expenses down. The co-op has been able to avoid increases for 7 years by better utilizing technology to improve reliability, operations, and efficiency. Further, we have looked for ways of combining positions rather than creating new ones. Additionally, we have taken several steps to help mitigate supply chain constraints and limit volatile pricing of our material. We have entered strategic partnerships with our vendors to help with improving supply timelines and provide some pricing stability.

In the cooperative business model, rates are not set to make a profit. In fact, when profits are made, they are returned to members in the form of capital credits. The focus with this rate change is to keep Union County Electric financially strong on behalf of our members and continue to provide the safe and reliable energy that you have come to expect from us.

Until next month, stay safe and God bless.

Quote of the Month: “The pessimist sees difficulty in every opportunity. The optimist sees opportunity in every difficulty.” – Winston Churchill – Prime Minister of the United Kingdom