02 Oct TVA, DREMC rate adjustments begin October 1
The Tennessee Valley Authority has announced a 1.5% wholesale rate hike effective October 1. Also, a 2.5% rate increase will go into effect for all DREMC residential members, effective for accounts billed after October 1. For the average household, the increase will be about $3.75 per month.
“We are a not-for-profit, member-owned cooperative, and we strive every day to hold down costs. In fact, DREMC has not had a rate increase in six years,” commented DREMC President and CEO Michael Watson. “No one likes price increases, yet this increase is necessary to maintain the high level of service and reliability our members have come to expect from their electric cooperative.”
The 2.5% increase to the retail rate a member pays is calculated on the average electricity use of DREMC residential members, which is approximately 1,450 kWh per month. In addition to the slight kWh price increase, the customer access charge will also increase by $2.66 per month to $28.66 for residential services less than 225 amps and from $31 to $33.66 for residential services greater than 225 amps.
“These customer access charge adjustments, which also affect commercial rate classes, are the continuation of a program to raise the monthly fees on an annual basis while lowering the actual cost of energy to align more closely with TVA’s wholesale rate structure,” explained Watson. “This means most of the distribution costs will be recovered through the access charge, thus making our members less vulnerable to effects of very high and very low temperatures.”
Relative to energy use, cooperative members will pay nearer the actual cost of power generation and transmission from TVA.
Watson further remarked, “We don’t take this rate increase lightly and have done everything possible to minimize its impact on you, our member-owners. We hope you will take advantage of our many programs, services and incentives we offer to help manage energy use throughout your home and business.”