As Chairman of York Electric Cooperative’s board of trustees, I want to speak directly to you, our members, about your co-op’s rate increase. In the last issue, we announced that the board of trustees, after significant deliberation and discussion, unanimously voted on a rate adjustment. For over a decade, your co-op has maintained stable rates by managing costs and making wise business choices. As new rates are implemented for next month’s power use, we want to continue our record of transparency on the factors that led to this decision and reiterate the steps we are taking to minimize its impact on you.
Understanding the rate change
In 2024, we learned that YEC’s own power bill from our wholesale power suppliers would increase by 11%. To minimize the effect of these costs on our members, York Electric has absorbed about half the impact by carefully managing our expenses while maintaining strong equity. Still, we cannot fully absorb these rising wholesale power prices through cost-cutting. Accordingly, beginning in February, members’ rates will increase by 6%. Even after this adjustment, YEC will still offer one of the lowest electric rates in the area and in our state.
Factors driving costs higher
Since May 2024, we have reported on the escalating challenges we face, including rising material costs, which are up more than 70% since 2019. Increased interest rates and government regulations regarding power generation have further strained our cost of doing business. Like all South Carolina electric cooperatives, YEC purchases electricity through long-term contracts with suppliers such as Duke Energy and Santee Cooper. Our rates are driven in large part by the price of wholesale power from those suppliers. Those wholesale prices are going up.
In particular, we will see significant cost increases arise due to the end of a court-agreed Santee Cooper rate freeze on Dec. 31, 2024. Starting in 2025, Santee Cooper customers—including YEC members—will begin paying for the unbudgeted, extra costs that Santee Cooper incurred during its four-year rate freeze period, when the utility wasn’t allowed to raise its rates to cover those costs.
We don’t know exactly how much co-op members will have to pay for these new costs, but we expect it to be substantial—into the hundreds of millions of dollars. These charges will come on top of Santee Cooper’s other planned rate increases, which will help it meet the rising prices for fuel and materials.
Moving forward together
In the face of these challenges, our team and our board are committed to advocating for the best outcomes for our members by working with our trusted partners, our fellow cooperatives and our elected officials. We will continue to positively impact the lives of our members by looking out for you and providing reliable, safe and affordable energy.
Although 2024 came with its challenges, your board of trustees is proud to share in our noteworthy accomplishments made last year by our team of outstanding employees.
Thank you for your trust, your understanding and your commitment to your co-op.
Chairman, YEC Board of Trustees