Rate Changes to be Implemented April 2024

March 8, 2024

Effective April 1, 2024, Union Power Cooperative will implement our first rate adjustment in five years, and only our second in nine years.

During the business portion of the 84th Annual Meeting last October and in last month’s issue of the Co-op Review, we made members aware of the need to adjust rates. This rate adjustment is to ensure the continued financial strength and security of your cooperative and allows us the ability to continue to provide reliable electric service.
Why the Adjustment? The rate adjustment is primarily driven by substantial increases in the costs associated with providing service to our members. This sharp rise in cost extends from the price of wholesale power to that of raw materials, construction, and maintenance. These increases have only been pronounced by inflationary pressures throughout the industry.
How was the Rate Adjustment Determined? A Cost-of-Service Study was conducted in coordination with an independent consulting firm, involving an in-depth analysis of the costs associated with providing service. The results of the study highlighted that our existing rates are insufficient to keep pace with rising costs. Ultimately, rates were adopted that balance the needs of the Cooperative against the impact on our members.
What’s the Impact of the Rate Adjustment? The impact to a majority of our members—those served under our General Service Rate—is anticipated to be less than $8 per month, on average. To put this into perspective, this is about the cost of a single combo meal from a fast-food restaurant. While all rates will be adjusted, the actual impact to any one member is highly variable.
Other Important Changes: There are a number of additional rate schedule and program changes, highlighted below:
All-Electric Rates: The Cooperative will no longer offer All-Electric rates. If you are currently served by one of the All-Electric rate schedules, you will be placed on the equivalent General Service rate, effective April 1.
Time-of-Day Peak Periods: If you are served by one of the Cooperative’s Time-of-Day rate schedules, notice that the definition of Peak Periods no longer excludes weekends and holidays, effective April 1.
Lighting Service: Significant modifications to the Lighting Service rate schedule and to the underlying administration of the lighting program are being implemented, effective April 1.