CEO’s Message – October 2023

As detailed on the 2024 Rate Adjustment Information page, Columbia REA will be implementing a rate adjustment in 2024. There are many reasons that this was a necessary step, and nobody likes any of them. The reality is that costs for nearly everything we buy, from the electricity that we provide to you, to the copper that carries that electricity through our lines, to the fuel that powers our vehicles, is going up.

We do our best to keep costs down wherever and whenever we can. We talk here in this magazine often about getting people switched over to SmartHub and electronic billing so we can hold down our mailing costs. It costs us a little more than $3 apiece to send a paper bill each month. That adds up to thousands of dollars over the course of a year.

We have also been relatively successful at making smart, forward-thinking decisions over the last few years on large-scale purchases like transformers and poles and wire to offset both inflation and supply chain issues. We are in a better position than many utilities when it comes to inventory on some critical pieces of equipment.

We are doing what we can, where we can, and whenever can to keep costs down, but eventually, the scale tips and we can no longer absorb cost increases within our existing budget.

It is our goal to be fair with the rates that we charge. 1 question that I hear often is about our facilities charge. Sharing the facilities charge across all members is the most fair and equitable means of paying for our system. Everyone uses electricity, so everyone shares that basic cost of maintaining the system – the overhead line or underground cable, transformers, substations, meters, poles, etc. We have 1,400 miles of line, with about 6,500 meters serving 4,300 residential and commercial members. That comes out to just about 4.5 meters per mile (Municipal utilities, for example, serve, on average, about 10 times that number).

We also work very hard to help you keep your monthly costs down, and we are always here to answer questions or work with you on your usage and efficiency efforts. And your efforts will be reflected in your monthly bill. If you are a heavy user of electricity, that shows up in your monthly bill as your kWh usage charge. If you use very little electricity, you will pay less per month than a heavy user. And if you can successfully spread your usage throughout the day and avoid heavy use during peak hours, you can avoid the demand charge altogether.

It is our mission to provide safe, affordable electricity to our members, and to do that in a manner that serves our membership’s needs and represents your interests as a member in the best way possible. As a not-for-profit cooperative, founded by a small group of members and now owned by you, it would run counter to the very reason for our existence to do it any other way.

Best,
Scott Peters, CEO