Just in the eve of the holiday season 2014, PEC residential members will see a delivery charge reduction applied to their electric bills. The new rate of $0.02712 per kilowatt-hour is a significant decrease from the old rate of $0.03212. The change results in a $5 savings for every 1,000 kwh used. PEC’s average monthly residential use is 1,275 kwh. Consequently, the majority of PEC’s residential members should see even greater savings on their bills. Rates reductions will be reflected in PEC electric bills prior to the end of this year.
This reduction was possible because of PEC’s aggressive focus on cost decreases and operational improvements. There are multiple moving parts that have to align perfectly before a rate reduction is implemented. This decision was carefully examined and was justified. It is the purpose of the board to find ways to pass some of the savings back to you, our members.
Also, we are pleased to announce that your capital credits distribution amount will also appear as a credit to your balance on your December bill.
Furthermore, the Cost of Service Study is currently underway and the end product will be a total redesign of our rate structure. Recommendations will be under review early in 2015. We are hoping to offer more customer choices such as consumption management, bill payment, time of use rates and many other features.
The PEC board has worked hard to organize finances and stayed focused on cost reduction. As such, we’ve kept an eye on debt obligation and expenses, and also implemented a plan to increase member equity from 17 percent to 35 percent within five years. PEC also has a mature capital credits program returning about $13 million to our members each year.
We are in the cost-reduction mode on many fronts and remain so.
Promises kept. Let’s keep positive progress going! It’s hard work but we can do it.