Adams Electric members will see a 14.1 percent increase for the average residential member in 2023. Members will notice the increase on the bills they receive in February for January use. Your cooperative is committed to providing reliable power and quality service at the lowest possible cost, and is working hard to minimize the impact of the necessary rate increase. The Adams Electric board sets rates once a year to help members budget and plan for the future.
CEO/General Manager Steve Rasmussen addresses the future of rates in his November Penn Lines column. Read it here if you missed it.
2022 and 2023 Rate Comparison
Rate Increase FAQs
Rates will increase by an average 14.1 percent increase for our residential members. For an average household that uses 1,250 kWh that would mean an additional almost $21.75 per month.
The rate increase will take effect January 1, 2023 and appear on the monthly statements of our members on February 1, 2023.
- Costs are going up, overall.
- Market based cost of electricity has increased drastically!
- 12% energy increase; 1.5% delivery of power and cost of materials
- You will notice a larger increase in the Energy Supply portion of your billing statement and a small increase in distribution charges. In simple terms, Energy Supply is the section that accounts for the charges for energy being delivered to the cooperative and passed through to the membership. The cost for energy will increase from $0.068 per kWh to $0.082 per kWh per month.
- The Wholesale Power Cost Adjustment (WPCA) is the pass-through of the cost of electricity to members without any mark-up. Each year, the cooperative must rebalance the prior year's billed amount by either returning or collecting additional money in the current year. In 2023, the WPCA is predicted to reset to zero dollars ($0), instead of the previous $0.002 credit.
- On the distribution side of the bill, the monthly access charge (the cost to deliver energy to your home) increased by $1 from $35.75 to $36.75. Plus, the per kWh charge increased from $0.028 to $0.029. The storm reserve is being reduced from $1 to $0.50 per month.
Rates across the country have gone up due to increased fuel and environmental costs. Adams Electric’s rates are very comparable with other local utilities serving the area. Even after this increase, we are on par with or below neighboring utilities. Based on the U.S. Bureau of Labor statistics, the co-op’s projected rates are lower than the regional average price per kWh of 0.177 and the national average of 0.157.
The first notice was in May 2022, when the co-op announced it would be holding costs thru the end of the year, but that rates would then be “reassessed in late 2022 for a possible rate adjustment in 2023.” In November 2022, we used Penn Lines magazine as our primary method of communication with estimated rate projections for our members. Other communication avenues we are utilizing include bill stuffers, our website, and social media.
Value of Electricity
Average Adams Electric Bill Over Five Years
What Impacts My Bill?
What factors have an impact on the bottom line of your electricity bill and how can you manage it?