In 2021, the board of trustees commissioned an independent cost of service study. The study found that current residential and general service rates weren’t adequately recovering fixed costs.
Fixed costs are broken out on your bill as the ‘service availability charge.’ This charge recoups a portion of the distribution member-related costs. It is intended to recover costs associated with metering, poles, wires, and transformers required to make service available. The cooperative’s actual distribution member-related cost is higher than the service availability charge. The energy charge recovers the remainder of the distribution member-related cost.
As a result of the cost of service study, your TCEC board of trustees has recommended a gradual, 10-year plan to address the recovery of fixed costs. This plan allows for a $2 increase in the monthly service availability charge for the residential and general service rate classes, beginning in January 2023.
“The gradual approach will help ensure the impact to you, the member, makes any changes as minimal as possible,” said TCEC CEO Zac Perkins. “Furthermore, it will allow the board to reassess the necessity of the plan on an annual basis. We are committed to keeping our membership informed throughout this process. We will release more details in the coming months.”
For an explanation of the charges on your electric bill, visit www.tcec.coop/bill. If you have any questions regarding your electric service, please visit www.tcec.coop/contact or call TCEC at 580-652-2418 during business hours.