The Proposed Rate Adjustment
As your member-owned cooperative, Pioneer Electric is committed to continually serving our members with safe and reliable power.
• As posted in the February edition of Kansas Country Living, the Pioneer Electric Board of Trustees will discuss adjusting the Energy Delivery Charge/Demand Charge during its monthly meeting.
• This change will result in a 1.4% overall rate increase that will be spread across several rate classes within our membership.
• The increase for each individual service will vary based on rate class and usage profile. The example provided shows how this rate change will affect a typical residential bill.
• The monthly meeting of the Board of Trustees will take place at Pioneer Electric’s Headquarters on February 25 at 8:30 a.m. Members interested in attending the meeting are welcome.
Why Is A Rate Adjustment Needed?
Increase in Material Costs
Pioneer Electric has seen a substantial increase in material costs. Distribution utilities have experienced an approximate 30% increase in costs since 2018 due to inflation. As a not-for-profit cooperative, Pioneer Electric must be able to recoup those costs.
The Cost of Service
Revenue from the Energy Delivery Charge/Demand Charge is reinvested into our infrastructure. It helps pay for materials such as wire, poles, transformers, and substation equipment. In order to reliably meet increasing capacity needs in our service territory, Pioneer has completed several large projects including the Hamilton county transmission line and substation.
Member Impact
The average residential household* could see an increase of around $3 on its bill.
- 5 kW x $3.75 (current rate) = $18.75
- 5 kW x $4.25 (proposed rate) = $21.25
*single phase rate with a usage of 1,000 kWh and a demand of 5 kW. This is an approximation.
How Members Can Control Demand