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Notice of Proposed Rate Changes

Notice of Proposed Rate Changes

Posted on January 31st, 2023

First Electric Cooperative Corporation (FECC) has sub-mitted proposed rate changes to the Arkansas Public Service Commission. If approved, the new rates will be reflected on the June 2023 bills. The rate changes will more closely align rates with incurred costs.

As part of its rate change, FECC is “rebasing” its monthly power cost and debt cost adjustment factors. This will result in smaller adjustment factors being applied than would be the case without this change. This reduction will offset part, or all of the increases being made to base rate energy charges.

For Residential and Small Commercial Single-Phase members, the Service Availability Charge (SAC) will change from $25.00 to $28.00, an increase of $3.00. The SAC is a fixed charge designed to recover the basic monthly costs of providing poles, wires, transformers, meters, billing, etc. The Minimum Bill will change from $28.00 to $31.00. If you use more than 25 kWh per month, this change will not increase your bill. Included in the proposed Residential Rate, the price per kWh will increase by a net of $0.004681 per kWh (the base rate will increase by $0.030005 per kWh and the adjustment factors will decrease by $0.025324). Including all changes, a residential member in the summer using 1,000 kWh under the existing rate would pay $140.39 versus $148.07 using the proposed rate, an increase of $7.68 or 5.47%.

All rates are changing. For example, the Large General Service rates will see an increase of $10 per month in the SAC, increases of $0.02 per kW in the Demand Charges and a net decrease of $0.00012 per kWh in the Energy Charges. General Service rates will see increases of $2.50 per month in the SAC, increases of $0.13 per kW in the Demand Charges and a net decrease of $0.000309 per kWh in the Energy Charges. Three-Phase 50 kVa and Less rates are increasing $2.50 per month for the SAC and a net increase of $0.003594 per kWh in the Energy Charges. All Lighting Charges are also changing.

For irrigation accounts, there will be a $3.00 per month increase in the SAC and an increase of $1.00 per kW in the summer Demand Charge. The cost per kWh has been increased by a net of $0.009606 (the base rate will increase by $0.034930, and the adjustment factors will decrease by $0.025324).

Chart with financial information and rate adjustment amounts

Public Service Commission reviewing rate adjustment

Notice is hereby given that the First Electric Cooperative Board of Directors has approved the above rate schedule and fees of this Cooperative as set forth.

The proposed rate changes are as follows: Residential $9,454,833 or 5.50%, Commercial Single-Phase $460,543 or 5.46%, Three Phase 50 kVa or less $142,582 or 3.30%, General Service 50-150 kVa ($13) or 0.00%, Irrigation $952,815 or 7.00%, Large General Service ($74) or 0.00%, Industrial ($47) or 0.00%, Security Lighting $149 or 0.00%, Athletic Field Lighting $5,521 or 7.00%, Municipal Street Lighting $31,705 or 5.63% and Traffic Signal Lighting $747 or 7.01%. Total rate changes will be $11,048,761 or 4.33% over adjusted test year total revenues.

Some rate classes, including Residential, currently include an option for seasonal billing instead of monthly billing. No existing FECC member is currently being billed under seasonal billing, and FECC will be eliminating this unused billing option. No members will be affected by this change.

Proposed rates and fees will become effective for all bills is-sued on or after June 1, 2023, unless, on or before May 1, 2023, petitions from ten percent (10%) of the membership have been received by the Arkansas Public Service Commission, 1000 Center St., Little Rock, Arkansas, 7220-4314. The mailing address is: P.O. Box 400, Little Rock, Arkansas, 72203-0400.

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