Rate adjustments effective Jan. 1
The new rate schedule for Lorain-Medina Rural Electric Cooperative went into effect Jan. 1 and will be reflected on members’ February bills.
The difference between on-peak and off-peak electric generation charges has increased from 3 cents to 3.5 cents per kilowatt-hour (kWh). This change in the difference between on-peak and off-peak generation charges is not a rate increase. When the rate difference is altered, the on-peak rate increases while the off-peak rate decreases proportionately. On-peak refers to times when electricity demand is the highest and therefore more expensive. Off-peak hours occur during periods of lower consumption, which is less expensive.
“The actual cost spread between on-peak and off-peak hours is between 3.5 and 4 cents per kilowatt-hour,” LMRE General Manager Markus Bryant said. “We are closing in on this target and should be able to maintain that 4-cent difference for a while, as our power supplier, Buckeye Power, has forecast the rates to remain stable for some time. This, however, could change if regulatory changes are made that affect power costs.”
The Basic Service Charge has increased from $30.25 to $32.25. This fee has been adjusted annually the past nine years. Members pay the basic service charge regardless of how much electricity is used each month. It offsets some of the fixed costs of providing electric service, such as the cost of poles, wire, transformers, and other necessary equipment. The increase in the monthly service charge allows the cooperative to keep pace with ongoing maintenance and replacements to its 1,535 miles of distribution lines.