Sam Houston Electric Cooperative

Sam Houston Electric Cooperative on June 13 held its public meeting regarding the notice of rate change for all classes of consumers. It was held at 2 p.m. in the Records Room of the Alabama-Coushatta Tribe's Administration Building.

Sam Houston Electric Cooperative, Inc. (Sam Houston) last changed base rates for electric service in 1992. Retail rate changes and retail rate restructuring is effective July 1, 2006.

The retail rate restructuring will affect most rates and will be reflected on monthly statements, wherein the majority of Sam Houston member-customers will be charged a Base Charge, an Energy Charge per kilowatt-hour (reflecting the cost to purchase generated electricity), a Delivery Charge per kilowatt-hour (reflecting the cost to transmit electricity), and, for some non-residential customers, a separately stated Power Cost Recovery Factor, or PCRF. The proposed rate changes are presented in the tables below.

By law, three steps must be taken before a rate change can be implemented. First, the Cooperative’s board must adopt a resolution approving the proposed rate change. Second, a notice of rate change must be sent to each member, either through bill stuffer, letter or member magazine at least 30 days prior to the implementation of the rate change. Finally, a public meeting must be held if the proposed rate change affects revenue by $100,000 or 1 percent, which ever is greater.

Notice was given to all members in the June issue of Texas Co-op Power. Additionally, a public meeting notice was published in all the local newspapers in Sam Houston EC’s service territory and posted on the Cooperative’s corporate Web site, www.samhouston.net.

Two members attended the public meeting. Kyle Kuntz, CEO, David Babcock, Chief Operations Officer and Chief Communications Officer Keith Stapleton answered their questions. According to the members, the public meeting was a chance to learn more about their electric Cooperative.

The rate change will be effective July 1. Due to the recent decline in natural gas, the adjusted rate has been lowered slightly from previous projections. Following the June Board of Directors meeting, the Energy charge, which includes the rolled in power cost recovery factor (PCRF), was reduced from 7.14¢ per kWh to 6.94¢ per kWh for residential members, a savings of $2.00 per 1,000 kWh.

The total difference in cost between the new rate and the old summer rate is $5.90. For the average Sam Houston EC member, who consumes 1,376 kWh per month, the difference is $6.99 a month.

Sam Houston Electric Cooperative continues to monitor the market pricing of all fuels and is pursuing buy-in opportunities in cost-effective, clean burning coal facilities.

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