2026 Rate Increase FAQs
1. When will the rate adjustment appear on my electric bill?
The rate adjustment will take effect on March 1, 2026. It will first appear on electric bills issued after that date. Baldwin EMC is announcing this adjustment in advance so members have time to review and understand the changes.
2. How much will rates increase?
• Basic service fee: +$2.00 per month
• Per kilowatt-hour (kWh) charge: +$0.00597
This applies to residential members.
3. Why is Baldwin EMC adjusting its rates?
The adjustment ensures Baldwin EMC can continue providing safe, reliable, and affordable electricity. Rising costs include:
• Materials and labor
• Vehicle and fuel expenses
• Investments in cybersecurity and system reliability
National energy costs are also increasing due to growing demand and limited growth in new energy generation resources.
4. When was the last rate adjustment?
The most recent rate increase was in 2023. Since then, Baldwin EMC has carefully managed costs while planning for the future.
5. How does Baldwin EMC keep costs down?
• Uses technology and operational efficiencies to reduce expenses
• Implements programs like advanced metering and paperless billing
• Operates as a member-owned, not-for-profit cooperative – excess revenue is returned to members as capital credits
6. Will rates increase again next year?
Currently, no additional rate adjustments are planned, though rates are reviewed regularly based on costs and long-term planning needs.
7. Who decides on rate adjustments?
The Board of Trustees has final authority. Decisions are based on:
• Cost of providing service
• Financial forecasting
• Long-term planning for the cooperative
8. Why doesn’t Baldwin EMC use profits instead of adjusting rates?
As a not-for-profit cooperative, Baldwin EMC does not earn profits. Any excess revenue is returned to members as capital credits.
9. Why are capital credits refunded instead of lowering rates?
Capital credits represent member equity and maintain the cooperative’s financial stability. Rate decisions are based on the cost of service, not the amount of capital credits refunded.
10. How were members notified about the rate adjustment?
The adjustment is being communicated in advance through:
• Mailed letters
• Alabama Living February magazine
• Baldwin EMC e-newsletter
11. How can I reduce my electric bill?
• Visit the Energy Savings page on Baldwin EMC’s website
• Track usage through monthly bills or the app
• Contact the Energy Marketing Department for personalized energy-saving assistance
