2024 Rate Adjustment Information

As stewards of your co-op, it is our primary mission to provide you with safe, affordable, electricity 24 hours a day, 7 days a week, 365 days a year. It is also our job to keep you, the members of Columbia REA, informed about changes in the industry that impact our ability to do those things, and that shape the way we move forward with our primary mission.

As our industry moves toward a cleaner, more efficient energy future, there are other challenges and changes happening, both legislation- and innovation-driven, that are impacting our costs as well.

There are 3 components that make up the electric bill you get each month:

1. Your kWh rate, which is the base rate that you pay for the electricity you use;
2. A facilities charge that covers all the parts and equipment that make up and maintain our electric system of lines, poles and transformers, as well as the labor to keep it up and running;
3. A demand charge, which is calculated based on how much and how fast you use your electricity.

Beginning in January of 2024, Columbia REA members will see a small increase in each of these 3 billing line items.

For single-residential ratepayers:

• The energy charge will increase from 9.08 to 9.10 cents per kWh.
• The Facilities Charge will go up by $5.00 per month.
• The Residential Demand Charge will move to $1.75 per kW for those who use more than 7 kW during that billing cycle (the 1st 7 kW are free).

Please see the diagram at right for a detailed look at these changes as they will appear on your billing statement.

Occasionally we must raise rates to cover the costs of maintaining a safe, reliable system. We have not had a rate increase since 2019, but with the rising cost of material and supplies we can no longer absorb these increases at our current rates. The Columbia REA Board of Directors feels that these increases are necessary at this time. And by structuring our rates in this way, we are asking everyone to share equally in the maintenance of the system that we all use, but at the same time, only pay your fair share for the electricity that you use.

Please keep in mind that the numbers detailed here apply to just our single-residential rate class. Other rate classes will see similar, if slightly different, adjustments. The overall average increase across all rate classes will be approximately 5.68%.

We also want to remind and invite all of our members to take some time to visit our website and familiarize yourselves with our energy efficiency and rebate programs. You can save money every month through efficient use of electricity at home, and we want to help you do that!

If we can help in any way with questions you may have about our rate structure, please email Columbia Rural Electric, and please include your name and a phone number where you can be reached.