Last month, your board of trustees made the tough decision to raise rates for the first time in over a decade. They unanimously agreed to a 6% increase for all members, which will go into effect in February 2025. We know that it is never good news to hear that your bill will increase, but please know we are doing all we can to mitigate the impact on you.
Since May, we’ve been transparent about the rising costs we’ve been combating to continue providing you with reliable, safe and affordable energy. While we have done our part to reduce expenses, costs continue to rise for supplies, materials, interest rates and electric generation.
As we announce this change, we think it is important for you to know all the facts. We hope this information allows you to stay informed about what your board and our management team discussed leading up to this decision.
- All rates will increase by 6% for York Electric Cooperative members.
- YEC has a power bill just like our members. In September, it was confirmed that power costs for YEC will increase 11%.
- To make up the other 5%, we will stay focused on controlling our expenses and managing our margins, while ensuring equity remains strong.
- The rate change will go into effect in February of 2025. Members will not receive a bill until March 2025 with the increase.
- Even with this increase, YEC will remain one of the lowest priced electric utilities in the state.
- Since 2019, the price of power line material has risen nearly 70%.
- YEC serves an average of 16 meters per mile of line, which is lower by more than half compared to the other electric utility providers in our service territory.
- While it costs practically the same amount for each company to build a mile of distribution line, YEC serves less members within that mile of line to cover costs. Even still, our price per kilowatt hour is lower than neighboring utilities.
- Because of regulations put in place by the Environmental Protection Agency (EPA), additional expenses to generate more electricity for our state could create a greater impact on members in the coming years.
- Santee Cooper provides the state’s electric cooperatives with approximately 70% of the energy we distribute to our members. Their rate freeze will be lifted on Dec. 31, increasing costs for wholesale power purchases. Additionally, they are seeking to charge co-op members for their share of an estimated $750 million in unbudgeted costs the utility incurred during the rate freeze.
Remember, York Electric is a not-for-profit, member-owned electric utility. We are required by law to operate at an at-cost basis. We’re not increasing rates to make more money; we’re increasing rates to cover the costs it takes to distribute dependable and safe electricity to our members.
In a separate news post, you will see an average residential bill and what you can expect from this change in February 2025. We’ll navigate this together and continue to look out for you.
President and Chief Executive Officer