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Understanding SEC's Rate Restructuring

Because we at Santee Electric Cooperative realize that, many times, any talk of change can be unsettling, I would like to take this opportunity to explain the upcoming "revenue neutral" realignment of SEC rates.

Following a comprehensive rate study conducted by an independent firm, several changes in rates were recommended and approved by the Cooperative Board of Trustees. The firm reviewed how the cost of providing electric service is distributed among SEC members to adopt a process whereby these costs can be spread more equitably.

Simply put, there are several charges included in the first line on each residential bill. First there is the base service charge and then there is the amount you pay for kWh used. Other services such as yard lights are listed below that. Since 2001, SEC's base service charge has been $6.50, and it is currently the lowest of all the electric co-ops in the state. Though the rate study showed this base cost to deliver service to each account is closer to $33, SEC's base charge will change to $13. The second cost included in this line on your bill is for the amount of electricity used. Currently, the average cost per kilowatt (kWh) decreases as the amount of electricity you use increases. This billing method does not encourage conservation and is actually contrary to some of the programs the Department of Energy is promoting. With its recent rate restructuring, SEC will be able to more justly distribute the cost of bringing electricity to its members among all accounts by increasing the base service charge and then charging the same amount for each kWh of electricity used.

The majority of the membership will not see much change in their monthly bill, even with increases for security lights and in the base charge of providing service. The chart on the next page breaks down what your charge would have been on the old rates and what it will be on the new rates. These adjustments are something we only consider when we absolutely must. We believe that reliable electric service at a reasonable price is something you can count on us to deliver on a daily basis, and we take that responsibility seriously.

This restructuring follows an industry wide trend to gradually but effectively align rate structures with associated costs. These changes will become effective on statements rendered on and after November 1, 2010.

Maintaining dependable service at the most affordable price possible remains the cornerstone of our business. To accomplish this goal, we must also protect the integrity and financial stability of our organization.  One way we are able to do this is by joining together with other electric cooperatives in South Carolina to secure the best price for electricity as we have done for many, many years. We also provide literature that helps members cut down their electric usage, in turn saving themselves money.

Please be assured that we are proactively planning for your future energy needs. We work hard to anticipate any potential issues that could escalate the costs of energy. Whenever possible, we work to minimize the impact those issues could have on your energy bills.

We are committed to providing reliable, affordable and environmentally responsible electric service. If you have any questions or concerns regarding this rate adjustment, we encourage you to call our offices at 1-800-922-1604. We will do our best to answer your questions and we look forward to working with you on ways you may be able to reduce your monthly bill. One strategy may be to implement energy efficiency improvements in your home or to calculate your energy use and budget it evenly over the year.

We're here to help and deliver the reliable electricity you've come to know and expect.

Index of Rate Schedules

Effective November 1, 2010

Interconnection Policy                                                                                                         Under development

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