2023 Rate Changes
To our Members:
Due to rapidly increasing market power prices and inflationary pressures on material cost, Members can expect to see their residential and/or commercial account bills increase by over 10% for 2023 when compared to similar billing in 2022. This will become effective with usage beginning on January 1st and reflected on utility bills that are received in February 2023.
All members will see an increase in their facility charges. For residential accounts, the facility charge will increase from the current $54 per month to $68 per month. Commercial accounts will see an increase in their facility charge by similar proportions when compared to their current facility charge. We certainly understand that for low usage accounts, facility charge increases hit hard. Those fixed charges (Facility charge) however, align with how we operate as a business. All of McDonough Power’s expense as well as a significant part of our power supplier’s expenses are fixed meaning they don’t fluctuate with the rise and fall of kilowatt hour (kWh) sales.
This year, all members will see an increase in their energy charge in addition to the increase in the facility charge. For residential accounts the new energy charge will be $0.107 per kWh which is up from the previous $0.105 per kWh. In addition, this year we will no longer provide an incentive rate for Geothermal, unmetered and metered electric heat rates. They will instead move to the new residential energy rate of $0.107 per kWh for their usage. Additionally, all our commercial accounts will see moderate increases in their energy cost as well.
Determining the new rate schedule for 2023 has been one of the most difficult if not the most difficult in my twenty-five years in the business. Every employee and board member of McDonough Power pay electric bills and see the cost of other goods and services going up elsewhere. However, it is important to remember that we are not motivated by profit. Extra revenue is of no benefit to our business model. Our motivation is to serve the members of McDonough Power with the most reliable and affordability energy that we can and do so 365 days a year.
If you have any questions or comments, please feel free to contact us.
Sincerely,
Mike Smith
President/CEO
McDonough Power Cooperative