Union Power Cooperative Undergoes Cost-of-Service and Rate Study

Effective April 1, 2019, Union Power will implement our first rate increase in four years. The rate adjustment includes an increase to the Basic Facilities Charge1 and changes to the kWh rates for both residential and commercial services.

As a not-for-profit electric cooperative operating at cost, it’s important to ensure rates are designed to recover the costs of providing you safe and reliable electricity. Every few years we hire an independent rate firm to conduct a Cost-of-Service and Rate Study2. The most recent study was conducted in 2018. Based on the outcome, residential rates will increase an average of 2.3 percent. The rate changes are necessary to offset projected increases for wholesale power and operating expenses.

Periodic rate adjustments ensure the financial strength and security of your Cooperative and our ability to provide our members with safe, reliable electric service.

1Basic Facilities Charge – Recovers a portion of the Cooperative’s fixed monthly cost that occurs regardless of the amount of energy purchased or sold. This includes the meter, meter reading, bill rendering and remittance processing, phone and outage system operation to provide for 24-hour emergency service for power restoration and repairs. The basic facilities charge is included in the energy charge on your bill.

2Cost-of-Service and Rate Study – Evaluates costs associated with wholesale power, operating expenses, materials, regulatory compliance, as well as infrastructure construction and maintenance. Rates are designed to equitably recover these costs.

Rate Schedule Effective April 1