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Managers Comment          

Customers Questions?

What is the basic monthly customer charge?                       Click to Enlarge

This is a monthly charge based on the cost of maintaining the service lines and meter at the customer's building and other operational expenses for the cooperative, such as reading meters, accounting, and other business functions for the normal day to day operation of the cooperative.

What is energy charge?

This is the measurement of the amount of electricity supplied during the billing cycle and it is expressed as kilowatt-hours or kWh. Ten 100 watt light bulbs burning for one hour will consume 1,000 watt hours (10 x 100) or 1 kilowatt hour.

An electrical meter for each customer measures the amount of energy used in kWh between meter readings.

This reading is very much like the odometer on a car, which measures miles traveled.

What is a power cost adjustment i.e.(wholesale power cost adjustment, purchased power adjustment) ?

This charge is the difference between the actual cost of a kilowatt-hour paid to Western Farmers Electric Cooperative and  the set base rate in Southeastern Electric's rate it charges to its consumers.

The wholesale power cost adjustment allows Southeastern Electric Cooperative to adjust for minor fluctuations (usually fractions of a cent) in the wholesale cost of power. The greatest changes from month to month are the cost of fuel.  There is also generation mix, coal, gas, wind and hydro  and the market prices for electricity which make the wholesale cost fluxuate.

This cost does not go to Southeastern Electric Cooperative. It is passed on to Western Farmers Electric Cooperative to pay for the kilowatt hours we purchase.

Is this a new charge?

No. The costs associated with the purchase and production of power have always been a part of your bill, included in the energy charge. The difference is that these costs are now listed separately in an effort to assist you in managing your energy costs.

Why is a deposit required to connect my service?

Southeastern Electric may request a refundable security deposit, much like landlords request deposits on rental properties, because a new member is requesting credit from us. Members pay for power after it is consumed.

When an individual first applies for service, the required deposit is based upon his previous pay with another electric company. Southeastern Electric is not an expert in credit; so if the individual has had a good pay history with another electric provider then a deposit is waived, otherwise a deposit must be made.

If a member asks that we not perform a check with their previous utility, the maximum deposit will be required.

Are there other times when a deposit may be required?

A deposit may also be required at the time of delinquent disconnect.

When a service is disconnected for non-payment, it is likely that power has been used for which we have received no payment. If a member allows his account to be disconnected for non-payment, we will review the usage history of his service, and a deposit equal to the highest amount of the last 12 months bill required.

If the members pay history for residential service is such that there are no more than 2 late payment out of the previous 12 months of service the deposit will be refunded or at time of disconnect.

Is my electric bill going to go up?

Yes. Southeastern Electric has recently implemented a rate increase that will appear on August's 2010 bills. As a result you will see an increase in you bill as compared to last year, if your usage remains the same.

How can I manage my energy costs?

Southeastern Electric offers many tips and services to help you make your home or business more energy efficient. For more information, call us at 580-924-2170 and ask for member services or visit our web site at se-coop.com.

Why is Southeastern Electric raising rates?

The rate increase is necessary to recover costs associated with the increase of costs of doing business. Southeastern Electric's last rate revision was in 2004. Since that time  fuel and material to build line have increases dramatically. Southeastern Electric is also required to maintain operating ratio's with our lenders in order to borrow money. For the year of 2009 and for the first half of 2010 Southeastern Electric has not made the necessary ratios and as a result are default on the current loans with our lenders.

 What is the impact on low income?

The customer charge is increasing $5.00 per month per meter. If a member only has one meter then the increase will be $5.00 plus app. 1/10 of one cent (.001) per kwhr. The base rate has been revised from .041766 to .055884 and should result in a power cost adjustment near $0 assuming fuel will remain as low as 2009's amounts and not fluxuate wildly. In turn a bill of 1,103 kwhr would increase over last year by app. $6.61 assuming Southeastern Electric's cost of power from Western Farmers Electric Cooperative remained the same as last year.

Are more rate changes coming in the future?

This can only be answered by yes, more than likely. When our rate consultants design a rate they try to design it to produce enough revenue to last at least three years. Ideally Southeastern Electric can go at least five to six years before another adjustment. As stated above our last rate increase was 2010 so we managed to operate for six years before a revision. We always try to postpone increases as long as possible to our members. If and when a carbon tax, Cap and Trade, is passed in Congress the cost of electricity is expected to increase dramatically as I have discussed earlier in the year and in the articles below.

Changes to Southeastern Electric's Line Extension Policy

It is the objective of Southeastern Electric's Board of Directors, myself, my staff and every employee here at Southeastern Electric to keep electricity as affordable as possible. But we must also weigh the policies and procedures closely to make sure we are keeping charges equitable among our members. Southeastern Electric's Line Extension Policy is one such policy that must be given thorough attention and thought as to how it is implemented. When I first began working at the Cooperative in 1977, I remember we would extend a line for the cost of $10. A few years later it was changed to a dollar amount for the first pole and another set dollar amount for any additional poles installed. The member would then get that amount paid credited to their electric bill. Sometime in the mid 80's our policy changed to where the member requesting line extension was given a footage allowance for a residential account. That footage amount was 300 feet for a residential service, and that policy has been in effect since that time. 

Southeastern Electric Cooperative is a nonprofit organization meaning that any margins made during an operating year are allocated back to the members participating that year. Southeastern Electric is NOT a dollar self-sufficient organization however, meaning that money needed to build new line and make system improvements to ensure quality service to it's members must be borrowed in addition to any yearly margins. Most of the funds are borrowed from Rural Utilities Service (RUS) which is a division of the United States Department of Agriculture. The remainder of the funds are borrowed from the National Rural Utilities Cooperative Finance Corporation (CFC). Most of the notes are borrowed for a period of thirty years at a competitive interest rate. The interest expense paid back to these organizations is one expense in Southeastern Electric's retail rates to it's members.

After reviewing the present line extension policy and with  input from myself, my staff and the Board of Directors several changes are being made effective June 1, 2009. The most important things we tried to keep in mind was, as I mentioned above, afford ability and equality among all members. The afford ability can be gauged not only by the out-of-pocket expense that a member will incur from a line extension, but also by the value of the electrical service provided. By more of the cost being paid up front for new line extensions, less loan funds have to be borrowed thus reducing interest expense for all members. This is a more equitable approach for all Southeastern Electric's members.

Costs for goods and services has increased in the past years and it is unavoidable that companies have to increase their costs to do business or the way they do business. I believe we have made appropriate changes to the Line Extension Policy and that the changes are equitable to all members.

At Southeastern Electric's April Board Meeting, the board approved the 2009 brush spray program. The area to be sprayed this year is the Lane Substation Distribution Lines . A notification to our members was inserted in S.E.C.'s May newsletter, the Circuit with this information also. Chemical spraying of brush is a very important part of S.E.C.'s Brush Control program in a number of ways but it all comes down to cost. We can spray the brush while it is small and prevent the more expensive alternative of clear cutting later on. Our brush program is a combination of clear cutting and spraying and S.E.C. spends approximately $1,000,000 yearly for right of way clearing. This years spraying project will schedule approximately 134 miles of line to be sprayed.

If you have questions or comments you may e-mail me lspeaks@se-coop.com or phone me at Southeastern Electric Cooperative 580-924-2170.

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