Special to the Journal
Effective with member billings that begin on April 1, Flint
Energies’ basic monthly charge for residential customers will increase from $21
per month to $22. This moves the service charge closer to the true
cost-of-service for residential members, which the co-op measures today at
about $30 per month per consumer.
The increase in the basic monthly charge will be another
step in executing an equity management plan to increase the residential base
charge by $1 a year, to $27 per month, by 2017. The gradual increase is an
effort to move closer to the actual cost-of-service that has been identified in
the last three rate studies. At least one neighboring electric utility recently
made a larger leap to a $28 per month base charge.
Flint Energies conducts a rate study every two years to
ensure that our rates cover the costs of providing service.
Flint’s new wholesale power contracts will take effect in
2015; our estimates predict that wholesale power costs will increase some 28
percent by then. Unfortunately, this dramatic increase is caused by things out
of Flint’s control, such as increased regulation and environmental
requirements like pollution control, which will be reflected in current and
future power contracts.
As a fiscally responsible electric cooperative, Flint is
looking at managing this increase now instead of later. By gradually
increasing the basic monthly charge over the next few years instead of
significantly increasing the basic monthly charge in a shorter amount of time,
Flint will try to soften the blow of the increase for our members.
These changes allow our Cooperative to meet financial needs
and continue to provide reliable electric service, according to Flint CEO Bob
Ray. “Our goal is to work every day to achieve the best operating
efficiencies as we face rising power costs. Even with the slight increase in
the basic monthly charge, the value of electricity remains very high,” Ray
says.
Option for low-income members: Members who receive a Low Income Energy Assistance Program
(LIHEAP) check to help them pay for electricity will be placed on Flint’s
low-income rate. Members who confirm their LIHEAP standing with a check payment
will be eligible for a reduced base service charge of $12, instead of $22 per
month after April 1.
HHJ News
