It’s never an easy thing to introduce a rate adjustment, but in February, your cooperative will be adjusting rates slightly to recover the increasing costs of operation. This adjustment will be, on average, around 1.5% over our current residential Rate 1. (This is the rate paid by the majority of you reading this.) If you consider the 9% inflation last year, material shortages, and other industry struggles NWEC is facing, we are sure you can relate.

Effective on the bill you receive in late February (due on March 10), residential, seasonal, and general service member-owners will see a $2 adjustment to the monthly distribution service charge and a roughly 0.0005 increase per kilowatt-hour (kWh). For a detailed breakdown of each rate class adjustment, see the chart at right.

Please note this is the first time in seven years that we are talking to you about a rate adjustment. We think that’s a pretty good record of price stability, when all around us we see fluctuations and price inflation.

Providing a reliable source of power is getting harder to do these days. Why?

• Material prices are up between 40% and 60% for everyday equipment like wire, poles, transformers, etc. Conduits alone saw a 313% price jump last year from the year prior.
• Coal and commodity prices directly affect the cost to generate electricity. NWEC’s purchase cost has been creeping up; over the last few years, it has gone up about 1 cent per kWh.
• Transmission costs — the cost to transmit power many miles from generation plants to local substations — are surging, with NWEC’s average transmission network demand charges (billed by grid operators PJM) up 13.5%. In 2022, the increase was $194,793 per month.
• Even basic truck and fuel costs have swelled. From November 2021 to November 2022, in Ohio, gas prices jumped 17.42%; diesel surged 53.11%. In the first 8 months of 2022, we spent an extra $25,000 to run our trucks and equipment.

Despite these financial burdens, NWEC has continued to return capital credits each year; last month, we returned $611,249 to current and former member-owners. This is proof that we are responsible stewards of your capital investment. Because we are not-for-profit and member-owned, you can rest assured that any profits (known as margins) are invested into the electric system or allocated to you via capital credits.

In today’s modern, connected world, having a source of safe, reliable, and affordable electricity is crucial. That’s what your local cooperative strives to deliver to you all day, every day. We’re proud of our efforts to serve your needs with competitively priced electricity, responsive member service, and proactive, necessary investments in the electric delivery grid.

You support all these services through the rates you pay for electricity, but those rates must cover costs.

I know that rate adjustments are never pleasant. I hope all member-owners understand that costs go up, but NWEC is doing everything we can to keep rates affordable and your power supply reliable.

Please remember these facts:

1. We understand rate adjustments are difficult for everyone, and we are trying to minimize the impacts on your bill. We offer rebate programs, free home energy audits, online energy calculators, and other efficiency resources to help you reduce your usage and lower your monthly bills. Our SmartHub account manager provides energy-monitoring capabilities, usage alerts, paperless billing, and automatic payment options to avoid late fees and save on mailing costs.
2. This is our first adjustment in seven years (since 2016), and the small 1.5% increase is well below the inflation rate.
3. The co-op board and all NWEC employees work hard to keep costs down. We do more with fewer employees on average than other co-ops our size.
4. Your electric rates are competitive compared to neighboring utilities. The savings are compounded more if you factor in that NWEC has distributed over $1.3 million back to member-owners over the past two years via capital credits.

For more details on this rate adjustment, you are encouraged to contact us Monday–Friday, 7 a.m. to 4 p.m., at 419-636-5051. Our helpful staff is here to answer any questions you may have.