The Rate Increase Recovers Delivery Costs

The proposed rate increase will recover the “fixed costs” of FIEC’s day-to-day operations, including, but not limited to, labor and benefits, insurance, materials and parts, vehicles and equipment, technology, fuel, principal and interest on debt, construction, maintenance, regulatory fees, and public policy costs. “Fixed costs” are the costs of providing the infrastructure and services necessary to operate the electric grid regardless of how much electricity is used.   

The rate increase applies to all FIEC’s costs except energy and transmission, which are recovered at cost through FIEC’s Energy Charge and Transmission Charge. There are no proposed changes to these charges. The rate increase does not involve Fox Islands Wind.

The proposed rate increase spreads fixed costs equitably across all customers through an increase in the Customer Charge and a new Capacity Charge – charges everyone pays.

An average Residential Service customer will see changes to the Delivery Service portion of their bill as follows:

The monthly minimum Customer Charge is increasing.

The new Capacity Charge bills customers according to their electric use during FIEC’s peak load, which typically occurs between 5:00 p.m. and 8:00 p.m.