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Rate Increase August 2017

 

Upward rate adjustments, even relatively smaller ones, are always unwelcome news for all of us at Boone Electric Cooperative. Our costs to deliver power to our membership have risen, which will require Boone Electric Cooperative to raise our rates effective August 1, 2017. The rate increase will be a modest 1.96 percent increase to annual revenue. There will be no change to the current cost per kWh, but we will increase our residential service availability fee of $24 to $26.95 per month and our small commercial service availability fee of $40 to $41.95 per month.

New Boone Electric Rate Structure 

Residential

Service Availability  ($24)→ $26.95

First 600 kWh @  9.1¢/kWh

Next 1,400 kWh @  8.2¢/kWh

Excess kWh @  7.9¢/kWh

Small Commercial

Service Availability  ($40)→ $41.95

First 600 kWh @  9.1¢/kWh

Next 1,400 kWh @  8.2¢/kWh

Excess kWh @  7.9¢/kWh

Compliance measures for past and recent environmental regulations combined with necessary upgrades to an aging distribution, transmission and generation system are driving these increasing costs. Please see the graphs below and know that your cooperative and its employees remain dedicated to balancing reliability and affordability, and we're still able to enjoy some of the lowest electric rates in the U.S. Using 2016 data, our residential user experiences an average cost of energy (kWh) lower than 75 percent of the electric cooperatives nationwide and almost 5 percent lower than the median residential customer in the state of Missouri. Even with the upcoming rate adjustment, Boone Electric Cooperative is still one of the most affordable energy providers nationally. 

Understanding the value of your dollar, and as members themselves, our Board of Directors continue to choose the smallest rate adjustment whenever possible. All bills received after August 1 will include the new rate structure.

About 65 percent of our expenses are directly related to purchasing power we resell to you – expenses we have limited control over. Historically, rate increases are primarily driven by the costs of generating power, including the costs associated with meeting clean air and water concerns. Your co-op has also worked hard to manage the remaining 35 percent of our costs. Such evidence is found in our operating expenses per consumer and consumers served per employee.

Please know we understand your need for affordable and reliable electricity, and we will never lose sight of our mission to continue to provide just that – now and in the future. We have also listened to many of you say how much you value positive personal interactions with our employees. Although, we have fewer employees today than we did in 2007, we will never abandon the personalized service you deserve and have come to expect. 

As always, please share your thoughts with us. Contact us by phone at 573-449-4181 or email us at Comments@booneelectric.com.

- Todd Culley, CEO & General Manager

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