2016 Rate Adjustment

2016 Rate Increase FAQs

  1. Question: When can I expect the rate adjustment on my electric bill?

    Answer: Baldwin EMC is making a rate adjustment effective March 1, 2016 to maintain the reliability and stability of the electric service the cooperative provides to more than 71,000 meters in Baldwin and Monroe counties. The change will first appear on the March electric bills.

  2. Question: How much does the co-op plan to adjust rates?

    Answer: We are implementing an increase of $ 10 per month to the basic service charge and slight changes to the kilowatt hour charge.

    • Residential Basic Service Charge (R1 & R3)
      • Increase from $27.95 to $37.95
    • Commercial Basic Service Charge – C1 (Single Phase)
      • Increase from $16.15 to $26.15
    • Commercial Basic Service Charge – C3 (Three Phase)
      • Increase from $26.00 to $36.00
    • Kilowatt hour charge – these rates do not include the power cost adjustment (PCA)
      • R1 Single Phase
        • Decrease in the per kilowatt hour charge from $0.06795 to $0.06698.
      • R3 Three Phase
        • Slight increase in the per kilowatt hour charge from $0.06795 to $0.06831.
      • C1 Single Phase
        • Slight increase in the per kilowatt hour charge from $0.07080 to $0.07978
      • C3 Three Phase
        • Decrease in the per kilowatt hour charge from $0.07626 to $0.07335.
  3. Question: Why must we have a rate adjustment?

    Answer: The rate adjustment is necessary to maintain the quality and reliability of the electric service the utility provides to more than 71,000 meters in Baldwin and Monroe counties. Our last rate increase took place seven years ago in 2009. These changes are being made to more closely charge for the cost of providing service to our members. With our current rates, it is no longer possible for the cooperative to cover our operating costs and still maintain the quality and reliability of service our members expect and deserve.

  4. Question: What is Baldwin EMC doing to keep costs down?

    Answer: The co-op continually looks for ways to operate more efficiently and keep expenses down. We’ve been able to delay increases for more than seven years by implementing a number of cost-saving measures, such as the online and smartphone apps, Prepay Power and paperless billing. We also use technology to improve reliability, operations and efficiency.As a cooperative, we don’t set our rates to make a profit. Rather, we are service-driven and operate at cost. In fact, when profits are made, they are returned to members in capital credits. Our focus is on keeping the business financially strong on behalf of all members, in order to continue to provide safe, reliable and affordable electric service.

  5. Question: When was the last rate adjustment for Baldwin EMC?

    Answer: Our last rate adjustment was seven years ago, in March 2009. During the past seven years, we have worked hard to delay increasing rates while the costs of providing electricity and doing business have continued to go up. Reliable service at a reasonable price is our goal as a member focused cooperative.

  6. Question: Will the rate go up again next year?

    Answer: A lot of different things can affect future rate adjustments; however, we don’t have plans for another rate change in the near future. Our goal is to provide affordable, reliable and safe electric service to our members. Baldwin EMC plans for a rate adjustment to last a minimum of five years. The last rate adjustment lasted seven years.

  7. Question: Did the installation of advanced meters cause this rate increase?

    Answer: No. The costs of upgrading to newer and more efficient technologies are considered as part of our long-range planning and budgeting process. Baldwin EMC creates annual, five-year and ten-year work plans so we are prepared for these upgrades. In addition, the efficiency gained by adopting newer technology helps to offset any increases in cost.

  8. Question: Who determines when a rate adjustment is necessary?

    Answer: Baldwin EMC’s Board of Trustees and executive staff continually monitor the financial stability of the organization to determine if or when a rate adjustment is necessary.

  9. Question: Why can’t the cooperative cut profits instead of adjusting rates?

    Answer: We are a not-for-profit, member-owned cooperative. We are in the business for the public good rather than for the financial benefit of an individual owner or stockholders. We don’t profit from our members. In fact, when profits are made they are returned to the members in the form of capital credits.

  10. Question: Why didn’t you tell me sooner my bill was going up?

    Answer: We announced the rate adjustment as soon as practical after the decision was made. Some of our publications must be written six weeks in advance of publication to meet printing deadlines.

  11. Question: How can I reduce my bill?

    Answer: The amount of your electric bill reflects how much power you use each month. Baldwin EMC offers a number of programs to help you manage your energy use, including the Baldwin EMC online and smart phone apps, website energy calculators, Prepay Power, energy audits, energy efficiency programs and averaged billing. To learn more visit our website, www.baldwinemc.com, or call us at (251) 989-6247.

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