HOW MUCH WILL MY BILL GO UP?
In 2025 the first phase of the proposed rate changes includes a $2.50 increase to the availability charge and a $0.005/kWh increase to the energy charge.
In 2026 the second phase of the proposed rate changes includes a $2.00 increase to the availability charge and a $0.005/kWh increase to the energy charge.
This change allows members to plan ahead as we implement smaller rate changes in a spread out, phased-in approach to honor member feedback.
WHEN DOES THE RATE INCREASE GO INTO EFFECT?
If approved by the board at the February 24th board meeting, the rate increase would begin with usage in April 2025, and you’d see it on your bill for the first time in May 2025.
The second phase of the rate increase would begin with usage in January 2026, and you’d see it on your bill for the first time in February 2026.
WHY ARE YOU RAISING RATES?
It’s our job to keep the lights on as safely, reliably, and as affordably as possible for our members. The only way we can continue providing the service our members deserve and rightfully expect, is to adjust our rates to meet continually increasing costs.
When we asked our members about what they prioritize more – keeping the lights on or having a lower bill – they said they wanted us to keep the lights on. While we still prioritize affordability and making sure members don’t pay more than they need to – a rate increase is necessary to keep the lights on with the flip of a switch.
We know we’re not the only ones dealing with increasing costs, so we wanted to find a way to ease the pressure of this rate change with a two-phased approach. As we plan for the cooperative’s future costs, we believe our members should be able to plan for future costs as well.
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. Members are our focus, which is why your feedback from the all-member survey played a role in how this proposal was developed. When asked about how we should approach future rate changes, 61% said they would prefer smaller, more frequent rate increases. We want to honor that as we plan for the future, allowing our members to plan ahead, too. By approaching this rate increase in two phases, we can keep the increases smaller and stretch the impact of each dollar.
We continue to run a lean and reliable operation. Compared to other Michigan electric utilities, we still have one of the lowest average member bills and provide the best reliability. To continue this trend, we’ll continue to need reasonable rate adjustments.
WILL THERE BE A CHANCE TO WEIGH IN ON THE PROPOSED RATE CHANGE?
Yes! There will be an opportunity to share your thoughts and ask questions of staff and the board of directors.
- Board Meeting and Formal Rate Hearing:
- February 24th, 2025 – 9:00 a.m. at the Cherryland Electric Cooperative Office in Grawn
- You can send feedback via email by clicking here.
ARE THERE WAYS TO KEEP MY BILL FROM GOING UP?
While the proposed 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 would 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.
