HOW MUCH WILL MY BILL GO UP?

The rate change includes a $4 increase to the availability charge and a $0.004/kWh increase to the energy charge. For the average residential member who uses roughly 700kWh/month, that translates to about a 6%, or $6.80, increase to their monthly bill.

WHEN DOES THE RATE INCREASE GO INTO EFFECT?

The rate increase would begin with usage in May, and you’ll see it on your bill for the first time in June.

WHY ARE YOU RAISING RATES?

Cherryland’s mission is to provide members with safe, reliable, affordable power. Without a rate increase, our ability to meet our mission will suffer. While we’ve been able to make some adjustments to our maintenance and tree trimming programs and put a hold on hiring to help mitigate some cost pressures, we still need a rate increase to ensure the long-term financial health of the cooperative.

There are three main cost pressures driving this rate change: supply chain costs, labor costs, and interest expense. We’ve all felt inflation impact our wallets, and it’s been particularly problematic for utilities. Since 2021, Cherryland’s cost for transformers has gone up 111%, electric power poles have increased by 30% and underground wire has increased by almost 60%. These are all essential items we need to keep your lights on. Labor is our second largest expense behind power supply. We work hard to run a lean operation, serving the most members per employee compared to any other co-op our size in the country. Losing the highly trained technical staff we currently have would cost a lot more than keeping up with market wages. Finally, high-interest rates have a major impact on industries like ours. In 2024, we will have over $3.7 million in total interest expenses, a 38% increase in our cost to borrow over the last three years.

For even more details, be sure to check out the latest CEO column.

HOW DO YOU DETERMINE WHAT THE RATES SHOULD BE?

As a not-for-profit electric cooperative, we just need our rates to cover the cost associated with providing members with safe, reliable service. After ending 2023 in the red, we looked at a variety of options on how to meet our financial needs most affordably. We landed on the option that would keep the proposed rate increase as modest as possible at 6% for the average member.

After this rate increase, our members will still be paying 18% less than the neighboring investor-owned utility that also serves our region during the summer and 9% less in the winter. The approach we’re taking aims to make sure we’re never raising rates higher than we need to, but that also means as we continue to navigate high utility inflation, we may need more frequent rate increases than we’ve had in the past.

ARE THERE WAYS TO KEEP MY BILL FROM GOING UP?

While the rate change will impact all members, you can always look for new ways to make sure your home is as energy-efficient as possible, which can save you a little money along the way. We also offer free home energy assessments and a residential time of use rate, which allows members to take advantage of lower energy rates during off-peak hours of the day. For more information on these options, click here!

I’M NOT A RESIDENTIAL MEMBER, AM I SEEING A RATE INCREASE TOO?

Yes. This rate increase will impact all rate classes. For more information on your specific rate class, check out the “Types of Rates” tab. If you need help identifying your rate class, you can look at the header on the back side of your bill, where it says “Rate.”

IF RATES ARE INCREASING, WILL MY CREDIT FOR EXCESS GENERATION THROUGH NET METERING ALSO INCREASE?

No. Members who sign up for net metering sign a contract that agrees to credit members $0.056 per kWh if they produce more than they use. The agreement lasts for 10 years.