If you read the January edition of Michigan Country Lines, you know that Great Lakes Energy is proposing rate changes that would result in a net increase of less than one cent per kilowatt-hour (kWh) for residential and seasonal accounts.
Under the proposed rates, the kWh rate for residential/seasonal members would increase $0.0216 per kWh and the power supply cost recovery (PSCR) factor would decrease to zero, a reduction of $0.0165 per kWh. The result is an increase of less than one penny per kWh, at $0.0051per kWh. The monthly charge would remain the same for both rate classifications.
For the average residential member using 800 kWh per month, this equates to a $4.08 monthly increase. For the average seasonal member using 200 kWh per month, this equates to a $1.02 monthly increase.
The increase, although small, would raise revenues to provide sufficient funding levels for maintaining reliable electric service, providing adequate margins and ensuring members receive the service they need to power their homes and businesses.
The need for an increase was identified in a cost of service study recently completed by an independent rate consultant. As a not for profit cooperative, Great Lakes Energy’s rates are established to cover costs. Margins (profits) are returned to members, not investors, in the form of capital credit refunds.
“We want the progress we’ve made in providing safe, reliable electric service to continue,” says Bill Scott, president/CEO. “As a not for profit cooperative, we are committed to seeking only enough additional revenue to cover our costs.”
The cooperative’s board of directors will hold a Jan. 24 informational meeting at GLE’s Boyne City headquarters to discuss the proposed rate changes for residential/seasonal rates as well as all other rate classifications. Members can attend to comment and ask questions. Members may also direct any comments or questions by email to firstname.lastname@example.org or by mail to Great Lakes Energy, Attn: Rate Increase, PO Box 70, Boyne City, MI 49712 by March 5.
The board will consider adoption of the proposed rate changes at an open member meeting on March 21. If approved, the new rates would take effect with June monthly bills.
Adequate margins will also allow Great Lakes Energy to continue to fulfill its obligation as a cooperative to share margins or profits with its members as capital credit refunds. Since 2003, Great Lakes Energy members have received more than $66.4 million in capital credit refunds.
Proposed Rate Changes
Current Rate Proposed Rate Change
Energy charge $0.0864/kWh $0.1080/kWh $0.0216/kWh
PSCR charge $0.0165/kWh $0.00/kWh $(0.0165)/kWh
Net increase $0.0051/kWh