Electric Rates Will Increase After 23 Years Of Stability

   There’s an old saying that goes "all good things must come to an end." So it is with your electric rates from North Central Electric Cooperative, because after an incredible 23 years without an electric rate increase, the cooperative will have to increase electric rates.
   Electric rates will increase an average of 15 percent, effective with the July 1 electric bill. The increase covers electric use beginning May 10 or May 20, depending on when your electric meter is read.
   "The rate increase is necessary because our wholesale power rates to the cooperative have gone up," explains Cedric Jacobson, general manager of the cooperative. Wholesale power costs have increased because new power plants are being built by the cooperative’s power supplier, Basin Electric Power Cooperative.
   "New power plants are necessary to meet the growth and demand for electricity," Jacobson points out. Wind, coal and natural gas resources are all being used to generate new sources of electricity. The costs of new generation are built into the cost of electricity.
   Low water levels in the federal hydro-power system have caused major price increases for hydro-electricity. Approximately 18 percent of the cooperative’s power comes from hydro-facilities, while 82 percent comes from Basin Electric.
   Wholesale power costs make up about 60 percent of the cooperative’s expenses, so an increase will affect the cooperative’s electric rates.
The rate increase includes an increase in the actual energy rates of .8 cents a kilowatt-hour. The.8 cents a kilowatt-hour covers all rate classes. Regular rate electricity for residential and commercial accounts will increase from 7.6 cents a kilowatt-hour to 8.4 cents a kilowatt-hour, for the first 1,100 kilowatt-hours used in a month. Additional energy use after 1,100 kilowatt-hours will now be billed at 7.1 cents, an increase from 6.3 cents a kilowatt-hour.
   Electric heat rates will also increase. The dual heat rate will increase from 2.7 cents a kilowatt-hour to 3.5 cents a kilowatt-hour. The all electric heat rate increases from 3.8 cents a kilowatt-hour to 4.6 cents a kilowatt-hour. Rates for electric water heating will increase to the same levels as electric heat rates.
   The special rate for load-controlled aeration grain drying will increase from 3.8 cents a kilowatt-hour to 4.6 cents a kilowatt-hour.  Rental rates for security yard lighting will also increase. The monthly rental rate for an unmetered 100 watt high pressure sodium (HPS) light will increase from $4.30 a month to $6 a month. Mercury vapor (MV) lights will increase from $4.80 a month to $8 a month, for an unmetered light.
   Basic service charges will also increase. Single-phase accounts will see an increase in the basic charge from $6 a month to $8 a month. The base charge for a three-phase account will increase from $15 a month to $20 a month. The base charge for special rate electric heat and electric water heating will increase one dollar to $6 a month. The base charge for aeration drying systems will increase from $8 a month to $11 a month.
   All of the various rate changes will increase the cooperative’s annual revenue by 15 percent.
   Although your electric rates are going up, Jacobson points out that electricity from North Central Electric Cooperative is still a bargain.
"Even with the increase, we still have some of the lowest electric rates in the country and state," he claims.  Heating with electricity will still cost you about half of what propane or fuel oil cost.
   "This is the first rate increase in 23 years, something we are proud of," Jacobson says. The last electric rate increase by the cooperative was in June of 1985.
   If you have any questions about the electric rate increase, please call the cooperative at (701) 228-2202 or (800) 247-1197.