Choptank Board to Vote on Rate Changes in November
Choptank Electric Cooperative Board of Directors will vote on proposed rate charges that will affect all rate classes at their next meeting on November 15th. Choptank has worked to control expenses associated with the distribution of electricity to members of the past five years but now distribution rates must be adjusted. However the increase in distribution costs is happening at the same time as a decrease in the cost of purchasing electricity, which may result in no increase or a small decrease in your monthly bill.
Additional information from Choptank Electric Cooperative:
Coincidentally, the increase in distribution costs is occurring at the same time as a decrease in the cost of purchasing electricity from our generation supplier – Old Dominion Electric Cooperative. This will allow us to decrease the Power Cost Adjustment (PCA) line on your bill. As promised, Choptank is passing the full reduction on to you. In most cases, the cost savings in electric supply will offset the increase in distribution, resulting in no increase or even a small decrease in your monthly energy bill.
To summarize, these are the anticipated impacts of the two rate actions on monthly bills for Residential Members:
- Customer charge of $11.75 is unchanged
- Proposed distribution increase to $.06351/kWh (currently $.05375/kWh)
- Proposed PCA decrease to $0.01650/kWh (currently $.03159/kWh)
- Overall Decrease of $5.33 per 1,000 kWh
- Overall Decrease of 3.11%
- Current 1000kWh bill=$171.57
- Proposed 1000kWh bill=$166.24
Additional details for all rate classes can be found on the rates page of our website at choptankelectric.coop/rates under Proposed Tariff Changes.
As a member of a not-for-profit electric cooperative, you have the benefit of a dedicated staff working to bring reliable, affordable electric service to you – at cost. Since our inception in 1938, the member-leaders of Choptank Electric Cooperative have prioritized the families, farmers and small businesses in the communities we serve. We do not have stockholders, so we do not have to make a profit to pay investors. We work for you. Any revenue margins are returned to you through our capital credit program.
We strive to be as transparent as possible with you as we undertake the responsibility of setting accurate rates to maintain the reliability of our electric grid. Members are permitted to comment on rate actions and/or be present at the Board meeting for consideration of new rates. Comments or questions can be sent to rates@choptankelectric.coop. To arrange to attend the November 15th Board meeting, please contact my Administrative Assistant at 1-877-892-0001 (ext. 8551) by 4:00pm on Monday, November 6, 2023.
