|January 3, 2018
CHEC Announces Rate Increase in 2018
Hatteras Electric Cooperative recently concluded a cost of service
study, which was conducted to ensure that electricity rates are
sufficient to recover the cooperative’s power costs and operating
expenses for both residential and commercial members.
rate consultant, along with management, reviewed the results of the
study and presented the findings to the cooperative Board of Directors
in November 2017.
expected increases in the cost of purchased power and system
improvements, including the upcoming replacement of our transmission
cable on the new Bonner Bridge, the study revealed that it is necessary
to implement an average 13.72% rate increase beginning in May 2018.
this amount, 7.2% of the increase is the result of projected wholesale
power cost increases. The remaining 6.52% can be attributed to
operations and administrative expenses, as well as the increase in
depreciation and interest expense associated with nearly $20 million in
capital investments over the next three years. CHEC has held rates at
their current level since 2009.
terms of dollar amounts, a residential account that has a monthly bill
of $120 will see an increase of $21, bringing the bill to $141.
Included is a small increase in the basic monthly service charge, which
helps the cooperative cover the cost of building and maintaining the
distribution system and delivering power. The residential and
commercial monthly service charges will each increase by $5.00 to equal
$25.00 and $30.00, respectively.
A full list of the new rate schedule is available at www.chec.coop.
a press release from CHEC, the company’s management and staff will
continue to work diligently to manage costs and to keep rates stable,
for as long as possible. However, CHEC reports that the cost of power
continues to rise, as does the cost of equipment necessary to keep
electrical system operating safely and reliably. Based on current
projections, CHEC anticipates having to implement another rate increase
in three to four years.