Dixie Electric Power Association has completed a rate study and will implement new rates effective April 2023.
The last rate change was in 2017, and another was planned for 2019; however, the association has been able to make it last a little more than six years through sound financial planning. The largest cost driver for Dixie Electric continues to be the rising cost of purchasing electric energy at the wholesale level. Approximately 75% of every dollar spent by Dixie Electric members on their power bills goes toward the purchase of wholesale power. Another driver is the cost of construction materials like poles, wire, and transformers, which, like almost everything else, has significantly increased due to supply chain disruptions.
The consumer charge for residential members is increasing from $.74 per day ($22.50 per month) to $.86 per day or about $26.25 per month, while the cost per kilowatt-hour remains almost flat. General use accounts, like pumps, barns, or shops, will also see an increase in their consumer charge from $.90 per day ($27.50 per month) to $1.08 per day or about $33.00 per month.
Commercial and industrial members will also see increases in their consumer charges and may see increases in kilowatt-hour rates and the demand charges, depending on their class of service.
“We’ve worked to push this change out as far as possible, but as our costs have continued to rise on virtually every front, it was inevitable that a change in rates would be needed to keep pace with the increases we have been experiencing,” said General Manager Randy Smith.
Below is a comparison of the existing and new residential rates with the consumer charge included at different levels of kilowatt-hour use.
These are estimates because of fluctuations in costs at the wholesale level associated with the generation of electricity.
Kilowatt-Hours Used Existing Rate New Rate
1,000 $120.91 $126.01
1,373 (Average) $157.60 $163.20
1,500 $170.12 $175.89
2,000 $219.32 $225.77
3,000 $317.74 $325.53