CHELCO to reduce rates by $1 million dollars
CHELCO’S Board of Trustees has approved a decrease in electric rates that will save its members $1 million during the next 12 months.
“By being good stewards of members’ money and reducing costs, we are able to pass significant savings along to members, and that is something we take great pride in here at CHELCO,” said CEO Steve Rhodes. “Our goal is to control costs while maintaining or improving safety, member service and reliability.”
CHELCO will reduce the distribution cost adjustment (DCA) on bills from $.004 (four-tenths of a cent) per kilowatt hour (kWh) to $.00275 per kWh. The reduction of $.00125 per kWh will save the average CHELCO residential member, who uses 1,200 kWh per month, about $1.50. The new rate will take effect on bills mailed in May for April usage.
The DCA tracks changes in the cost to distribute electricity to CHELCO members. It can change if costs increase or decrease. CHELCO calculates the DCA once each year. The other component of expenses, the cost to purchase electricity, is tracked up or down by the wholesale power cost adjustment (WPCA).
In the last two months of 2014, CHELCO reduced members’ bills about $600,000 by adjusting the DCA to reflect lower than budgeted costs achieved in 2014.
“The lower DCA for the next 12 months reflects CHELCO’s efforts to contain costs,” said Rhodes. “This adjustment is for 12 months because we are recognizing that these measures are ongoing. CHELCO has taken small steps in many different areas to achieve these results. It is a credit to the board of trustees and all employees who prioritize the best interest of our members as they work day-to-day and plan for the future."