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  • May 2018 Base and Delivery Restructure

May 2018 Base and Delivery Restructure

The costs for poles, wire, transformers and materials continue to rise, just as the costs of goods and services do globally. Even as costs have risen, the Sam Houston Electric Cooperative Board of Directors has maintained rates since 2006 (12 years).

A close look at our operating costs, however, will show that the total monthly cost for the Cooperative to provide and maintain electric service, before any kilowatt hours are used, is more than $35 per meter. The current rate structure ($12.75 base charge + 3.34 cents per kWh delivery charge) does not equitably recover costs to pro- vide and maintain service to each and every meter throughout the Co-op’s system.

A large percentage of the Co-op’s meters use zero kWh or very few kWh each month. These meters are often located at hunting camps, electric gates, barns, water wells, etc. With such low usage each month, these meters are not paying their portion of the cost to provide and maintain their electric service. As a result, these meters are being subsidized by homes and businesses with higher consumption each month.

The Sam Houston EC Board of Directors adopted a resolution December 20, 2017, recognizing the need for and approving the implementation of a revised rate structure.

The base charge will increase from $12.75 to $19.75. To lessen the impact of this adjustment, the delivery charge will decrease from 3.34 cents per kWh to 3.10 cents. By raising the base charge and lowering the delivery charge per kWh, the costs of providing service are allocated more appropriately. Their decisions were focused on the financial impact on our members and the wellbeing of the Cooperative.

These adjustments to our rate structure will have a very small impact on bills. The average member will see an increase of $3.88 to their bill. Accounts with zero kWh consumption will see a difference of $7 on their monthly bill, which is the most any bill will increase as a result of this restructuring.

Sam Houston EC will provide public notice to the membership and hold public meetings during the months of March and April. The rate adjustment will go into effect May 1, 2018.

See how your bill will be impacted with our easy-to-use calculator.

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