FIEC New Rate Structure
FIEC’s new rate structure takes effect on July 1, 2023. The modified T&D rates repeal the provision that includes 50 kWh of T&D service in the monthly minimum charge – customers will pay the T&D rate, Conservation Assessment, and Low-Income Payment Assistance Program Assessment on all kWh used. The T&D rates were also adjusted based on a cost-of-service study.
The Commercial and Large Commercial classes were refined to less than or more than 18,000 kWh use per year, which addresses the inequity of businesses that are provided large commercial service yet are billed as commercial customers due to the seasonal nature of their operations.
The rate change increases operating revenues by $136,570, which is 7% of FIEC’s 2022 operating revenue, excluding power and transmission expenses. The revenue increase was necessary to ensure compliance with the mortgage covenants on debt and maintain FIEC’s operations with the rising costs of goods and services in the current economic climate. FIEC realized a negative operating margin in 2022 of -$19,427. The loss is attributed to the rising costs of goods and services and significant system repairs during and following the severe winter storm on December 23-25, 2022.
