We regularly benchmark our operating expenses and other operating data against other electric cooperatives. This benchmarking consistently shows that GLE operates in an efficient manner and often ranks near the very top of electric cooperatives nationally. We will continue to use these benchmarks to monitor expense levels and other productivity measures in order to keep electricity a good value for members. As an example, we rank 15^th among 816 electric co-ops nationwide in productivity based on number of members per employee.  In other words, only 14 electric co-ops in this group have more members per employee than GLE.

The proposed rate change includes a $3.28/month increase in the fixed billing charge for residential permanent and non-permanent (seasonal) members. Effective Nov. 11, 2011 the monthly charge will change from $15 to $18.28 ($45 to $54.84 per quarter for seasonal accounts).

The energy charge for permanent residential full-time members will change from $.09590 per kWh to $.09653 per kWh.  The energy charge for non-permanent residential seasonal members will change from $.15066 per kWh to $.14629 per kWh.

An increase in the outdoor lighting rate was also approved.  Depending on wattage size, members with outdoor lights pay from 80 cents to $3.20 more per month for their GLE outdoor light.

For more information see the Rates section of this site.

These programs will continue to offer the same discounts for eligible members with electric heat and/or electric water heaters. GLE and EO rebates for heating and cooling equipment and water heaters are also still available. Contact our Marketing Department for details at 1-888-485-2537, ext. 8957 or glenergy@glenergy.com

Our size and age of our lines are the main factors that help explain why large investments are required to improve our reliability and service. About 60 percent of our power line distribution system is at least 40 years old.  We rank second among electric cooperatives throughout the United States with most miles of line.

Although thousands of GLE members have benefitted from improvements made in recent years, there are still many areas where reliability remains a concern. Our cooperative principles necessitate the same high level of reliable service to all GLE members. This rate increase will provide the funds to allow us to continue to work toward that goal.

In general, electric cooperative rates tend to be higher than municipal electric utilities and investor-owned companies such as Detroit Edison and Consumers Energy. The amount of revenue electric cooperatives collect per mile of line is approximately one-tenth of what neighboring investor-owned and municipal electric companies receive. That’s because electric co-ops serve large, rural geographic areas with few high-use industries and businesses. Great Lakes Energy serves an average of 9 members per mile of line while investor-owned and municipal systems serve an average of 35 to 47 customers per mile.

Two monthly billing plans are available, including one that offers a lower rate to those who qualify. Non-permanent residents who use more than 8,000 kWh in a calendar year qualify for the SLM rate. If a member used more than 8,000 kWh in a calendar year they can be put on the rate immediately. If they use more than 8,000 kWh in 2010 they will be notified by us in January each year that they qualify for a monthly billing plan that offers a lower rate – the SLM rate. They also may qualify for special discounts if they use electric heat and/or an electric water heater.  Another monthly billing plan that does not include a rate reduction is available to any non-permanent resident who would prefer to be billed monthly rather than quarterly.

Yes.  Our annual reliability goal to reduce average outage minutes has been met for four straight years. We’ve met all state-mandated standards for electric service and reliability for three straight years. Number of members who give us high marks for our electric service reliability has grown from 75% in 2006 to nearly 85% in 2009.

The fixed costs involved in GLE’s normal operation amount to about $30 per month for the average residential member. We recover many of these fixed costs from the variable energy or kWh charge.  As a result, we don’t collect enough revenue from many of our residential low kWh users to cover the fixed costs of providing them electric service. By increasing the fixed monthly charge we help reduce this inequity. Additional changes to the fixed charge will be needed in the future to eliminate this inequity. Ideally the variable energy usage charge should cover only the cooperative’s variable cost of service, most of which is related to purchasing energy from our power supplier.

The monthly/quarterly fixed charge is intended to cover maintenance, poles, wires, billing, member services, tree trimming and other fixed costs involved in the normal operation of an electric cooperative regardless of the amount of energy each member uses.