SE Iowa News

Effective April 1, 2023, Access Energy Cooperative will be implementing our first rate increase to members since 2016. Even though the costs from our power supplier have increased during this time, those increases were not passed on to the members.  We will be holding member information meetings in February available to all members who have questions. 

Three main factors are driving the increase.  First and foremost is a significant increase in the cost of power from our power supplier.  Power cost is the largest part of expenses; it accounts for sixty-eight (68%) percent of your bill. In comparison to other cooperatives whose power cost ranges from 55% to 60% of their bill, it is evident that Access Energy Cooperative is very efficient in providing service to our members.

Secondly, as with most products you purchase, our costs of purchasing materials has increased.  It has also become more difficult to obtain some items because of supply chain issues.  During the last two years, our cost of materials has increased on average by about 30%.  With supply chain issues we have been ordering and storing materials in preparation of future needs.  As a result of these two factors, our overhead and operations expenses have increased.

Finally, the most important asset you have as a member of Access Energy Cooperative is our workforce. The employees of Access Energy Cooperative are highly educated and possess a variety of technical skills and training.  The cooperative spends resources to ensure employees are trained and working safely for you.  Retention and attraction of a highly skilled workforce costs money.  As with any organization, wages and benefits have increased over previous years. 

Over the past year, we have been discussing our  increasing costs and how they affect the cooperative. Your board of directors has thoroughly discussed these cost increases for several months, so it is evident that decisions to raise rates is taken very seriously by your cooperative.  Additional increases in power costs are expected in 2024 and 2025, so your board will be constantly evaluating how this will affect our members. We expect there will be additional rate increases in 2024 and 2025.

The official notice with the rate information will be available February 1, 2023. An official letter will be sent on February 6, 2023, to every member with the new rate information for each of their accounts.

We will be holding three member information meetings to answer questions and concerns regarding the rate increase.

If you have questions about this or anything, please contact me at the office. We want to be available to all members who have questions. 

Letter from David Tutor, Associated Electric Cooperative, Inc.

2023 power supply rates impacted by fuel costs, inflation, energy policies

By David J. Tudor

As the leader of Associated Electric Cooperative, I work with a team of dedicated employees generating electricity for six transmission and 51 distribution cooperatives, including Access Energy Cooperative. Our mission, plainly stated, is to provide reliable, affordable and responsibly-generated electricity to those we serve.

Associated is governed by our 12-person board of directors; transmission member-owners who provide strategic guidance and make key decisions as representatives of their membership across the 51 cooperatives in Iowa, Missouri and Oklahoma.

In September, the Associated Electric board of directors made the difficult decision to approve a budget for 2023 with a wholesale power rate increase that will go into effect on April 1, 2023. This decision was not taken lightly and will be Associated’s first rate increase to wholesale power rates since 2017, despite the significant costs incurred during historic winter storm Uri in February 2021. During storm Uri, Associated’s 57 cooperatives experienced no rolling blackouts.

Associated’s wholesale power rates are designed to reflect the costs to serve the system and collect revenues in proportion to those costs. With the increase next year, member rates will still be competitive in the region and nation.

As you have seen in your area and across our country, costs for many things are way up, but none more than fuels and energy-related products and services. Likewise, Associated’s need for a rate increase is due to growing revenue requirements across many categories but is driven primarily by higher prices for the fuel and transportation used to generate most of our electricity.  Supply and demand determines much of the cost for our fuels, as does inflation, the regulatory environment and energy policies from Washington D.C.  

Our pledge to you is that Associated and its employees will continue to do our best to protect the reliable, affordable power you have come to expect. As a cooperative, it’s in our DNA. And it’s our privilege to serve this cooperative system.

David J. Tudor joined Associated Electric Cooperative as chief executive officer and general manager in May 2016, bringing more than 30 years of experience in the energy industry, including electric generation assets, wholesale commodity trading and utility management.

Original source can be found here.