At Central Missouri Electric Cooperative, we are a not-for-profit, member-owned cooperative that strives to provide safe, reliable, and affordable electrical service. We work to operate at the lowest possible cost with any profits earned being returned to our member-owners. Like you, over the last couple of years, CMEC and our energy generation co-op, AECI, have continued to experience significant increases in energy, fuel, labor and equipment costs. Unfortunately, due to this, your cooperative is facing a rate increase.
At CMEC, we do not take this increase lightly and have done everything possible to minimize its impact on our member-owners. However, to continue providing reliable and high-quality service, we must implement a rate increase that will take effect starting April 2023. You will see this increase reflected on your May bill. With this, the average household will see a roughly fourteen-dollar monthly increase.
As your cooperative, we are committed to minimizing the impact of necessary increasing power costs on your households and businesses. Contact us to learn how to save more energy and also to learn more about our energy efficiency rebates, incentives, and loans.
Single Phase Residential Rate
Small Three Phase Rate
Two-thirds of this rate increase covers increased generation and transmission costs in order to maintain reliable power to our member-owners. The remaining third of this increase covers the spike in contracted labor and supply chain costs.
Many CMEC member-owners remember the February 2021 polar vortex. When the wind wasn't blowing our wind turbines and the sun wasn't shining on our solar panels, CMEC's power generation co-op, AECI, kept the lights on while our neighbors experienced rolling blackouts. AECI absorbed the majority of the costs incurred through this expensive event in order to keep members' rates stable. Some of those costs are being passed through to CMEC in 2023 while AECI experiences additional operations and maintenance costs. Local distribution-level cost increases have been caused by 2022 and 2023 spikes in contracted labor and supply expenses for routine system maintenance. For example, a standard wood pole cost $311 in October 2021 but cost $566 in November 2022.
The average rate increase across the membership is 8.4%.
When rates were adjusted for 2022, CMEC's co-owned generation co-op, AECI, did not project an energy generation rate increase for 2023. AECI's absorption of the 2021 polar vortex expenses along with other higher maintenance and fuel costs led AECI to adjust plans and increase rates for 2023.
This rate increase will be reflected on your May bills.
Single-phase residential members will see a $5 increase in monthly service availability and an increase to their kWh rates. For a household using 1,000 kWh per month, this results in an increase of $14, or a little under $0.50 per day.
We are a not-for-profit, member-owned cooperative. Funds in excess of annual expenses are called margins and are set aside for our members at the end of each year. This rate adjustment will maintain budgeted margins steady for 2023. Margins are retuned to members in future years in the form of capital credits.
There are many ways to reduce your energy use. Learn ways to save on our Saving Energy Ideas webpage. You can also contact us to learn more about our energy efficiency rebates, incentives, and loans.
Our office is open from 7 a.m. to 4 p.m., Monday through Friday. You can also call to speak with one of our member service representatives at 660-826-2900 or email us at firstname.lastname@example.org.