Why Raise Rates?

With rising costs, we must ensure financial stability so we can continue providing reliable service.

• Rising Costs
  • We take a mindful approach to strike the right balance of keeping costs affordable for members and ensuring the long-term stability of your electric service. 
  • By conducting a Cost-of-service study, the Co-op realized that revenue is no longer keeping up with rising costs. 
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      • A Cost of Service Study (COSS) is an analytical process performed by a third party used primarily by utilities (electric, water, gas) and other service providers to determine how much it costs to deliver services to different customer classes. The goal is to ensure that rates charged to customers are fair, equitable, and aligned with the actual cost of providing service.
  • In recent years, the cost of poles, wires, transformers, and other equipment needed to deliver power to your home has risen.
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      • Wire + 21% 
      • Poles + 79% (last 4yrs)
      • Cost comparison: Ground beef + 38.9% & Eggs +80.8% (since 2022)
  • Our last adjustment to kilowatt-hour rates was in 2017; nearly a decade later the cost of materials and energy has skyrocketed. 
• Financial Stability
  • As your not-for-profit electric provider, we work to keep your service affordable and reliable. As the costs of supplies associated with providing this service rises, we must raise rates to ensure the co-op’s long-term financial stability. Our last adjustment to kilowatt-hour rates was in 2017; nearly a decade later the cost of materials and energy has skyrocketed
  • We strive to offer our members exceptional member service. We take a mindful approach to strike the right balance of keeping costs affordable for members and ensuring the long-term stability of your electric service. The co-op serves seven meters per mile of electric line, so we have a small number of consumers to spread the fixed costs of conducting business.
• Reliability
  • The new adjustment allows us to ensure you continue to see “the cooperative advantage,” such as 99.98% reliability, exceptional service, and Logan County Electric Cooperative being a trusted community partner, for years to come.