Starting on the bill you receive In May 2024 (due in June), the average residential member using 1,200 kWh a month will see a $26.45 increase due to the increased costs of providing power. Click here to see the detailed breakdown.
Commercial accounts, net billing, and Time-of-Day accounts will be contacted separately.
Note: The increase you see may be more or less, depending on your energy usage. If you have questions or would like to find additional ways to save, please contact our office at 800-686-2357.
Why is an increase needed?
Our costs of doing business have increased substantially since our last rate increase in 2018. These new rates were recommended and approved by our Board of Trustees (composed of and elected by our members) after our third-party Cost-of-Service Study to ensure we are covering our true costs of providing power.
Continuing without raising rates puts us at risk of having insufficient funds to invest in YOUR electric reliability. We have held off this increase for six years to try to minimize the impact on our members.
We are not-for-profit and member-owned, so any increase in revenue is only used to re-invest in our system and office operations. Our electric system is valued at $70 million and requires $4-5 million in yearly maintenance and upgrades. Since 2020, our average equipment costs have increased 40-60%.
Here is a summary of the changes affecting an average residential member using 1,200 kWh a month:
-
For residential members (the majority of you reading this), the average monthly increase is $26.45.
- The monthly service charge is increasing by $6.50 (from $35 to $41.50 per month).
- This covers the fixed costs PPEC has to ensure reliable power is available to you 24/7/365 through wires, poles, transformers, and other equipment, as well as maintenance, taxes, etc.
- The distribution energy charge (kWh charge) is increasing just over a ½ cent (from 1.9 cents to 2.5 cents per kWh).
- This is the cost to bring electricity from our substation to your home.
- The Generation and Transmission Charge is increasing by 2.3 cents (from about 8.1 cents per kWh to about 10.4 cents per kWh).
- This covers costs associated with producing electricity and moving it from a generation facility (like a power plant) to the distribution substation. This includes the current Wholesale Power Cost Adjustment (WPCA), which reflects the fuel, transmission, and demand costs passed on to PPEC from Buckeye Power, our wholesale power supplier. Once the WPCA is rolled into the G&T charge, this will set a new base for the power cost adjustment moving forward (which is why you will see this line item reset at 0.00 cents in May).
- Note: The WPCA varies month to month and will continue increasing due to rising power generation and transmission costs. Members can help us manage this charge by joining our load management program and conserving energy during peak alerts.
- Note: The WPCA varies month to month and will continue increasing due to rising power generation and transmission costs. Members can help us manage this charge by joining our load management program and conserving energy during peak alerts.
- This covers costs associated with producing electricity and moving it from a generation facility (like a power plant) to the distribution substation. This includes the current Wholesale Power Cost Adjustment (WPCA), which reflects the fuel, transmission, and demand costs passed on to PPEC from Buckeye Power, our wholesale power supplier. Once the WPCA is rolled into the G&T charge, this will set a new base for the power cost adjustment moving forward (which is why you will see this line item reset at 0.00 cents in May).
- For those with an outdoor light, the cost per month is increasing by 68 cents (from $10.80 per month to $11.48 per month).
PPEC residential members will pay 12.9¢ per kWh. Even after the rate adjustment, this is still less than the average price in Ohio and Indiana.
PPEC residential members will pay 12.9¢ per kWh. Even after the rate adjustment, this is still less than the average price in Ohio and Indiana.- This rate increase is still lower than what neighboring electric providers such as AEP and I&M have implemented in the last year again due to the rising costs of doing buisness.
- Our Wholesale Power Supply comes from Buckeye Power, a not-for-profit cooperative serving Ohio’s 24 distribution cooperatives. We own our own power-generating assets, instead of relying on an unpredictable market. And our fuel generating source is primarily coal – the most economical source.
- Shared services: We share marketing and communications employees, as well as energy advising and other services with area co-ops. Sharing these employees saves PPEC more than $30,000 a year!
- Competitive bid process for tree trimming, pole testing, and other major projects.
- Load Control - Water heater and air conditioner control switches and commercial account off-peak programs help us save thousands in avoided demand charges. Members also keep rates down when they conserve energy during peak alerts.
- Grassroots Lobbying - many examples of fighting for fair legislation and regulations.
- Outsourcing
- Just a few examples include Billing and Member Information software, as well as dispatching after-hours. This is why we also have an automated phone line to handle bill payments, outages, etc.
- Purchasing – Our transformers, conductors, etc. are mostly purchased from not-for-profit cooperative-owned supply companies. This keeps costs low. We also have a dedicated warehouse employee who researches the best prices and monitors market conditions to pre-buy when possible.
- We partner with a non-profit insurance provider for employee benefits. Through the National Rural Electric Cooperative Association (NRECA), they do not receive commissions, pay taxes, etc. compared to other insurance companies that pay margins and need to increase rates to increase their bottom dollar. We are solely paying for coverage and getting the best price.
- Electronic and digital efficiencies provide greater member convenience and reduce employee costs.
- Over 70% of our members pay electronically or automatically, and 20% are enrolled in paperless billing, saving us mail and paper costs.
- Energy library, online energy audits and calculators
- Payment processing – scans and uploads member payments rather than manual processing.
- Office and field technologies and work processes are almost all electronic or automated
- Our SmartHub site provides our members access to everything they need regarding the self-management of their accounts.
We have several free programs and tools to help you control your electric use. Feel free to call us for details, questions, or personalized advice.
- Take advantage of our rebates for energy-efficient upgrades.
- We provide free home energy audits – over the phone, in person, or even online using software.
- Take advantage of our online energy calculators to help you determine what it costs to run almost everything in your home.
- Join our Radio Controlled Switch Program for your electric water heater or air conditioner.
- Our SmartHub app and online site give you access to monthly, daily, and hourly electric use. This can help you identify where your energy dollars are going, which could lead to savings. Create your account now.
Starting in April, SmartHub will be getting a NEW "Home Energy Analytics" tool that will show you the energy breakdown of each appliance in your home and offer bill projections and custom tips to help you save. Make sure you have a SmartHub account to take advantage of this informative new capability to give you complete control over your electric account and usage!
After reading the FAQs below, if you still have questions or would like clarification on anything, please call our office at 800-686-2357 or email member_services@ppec.coop.
PPEC recognizes that financial hardships happen to everyone, and sometimes you need a little extra support paying your bill. We have many options available to do things like giving more time to pay, setting up payment plans, and harnessing the power of our communities to help reduce your payment. Let’s work together to find the right option for you.