PLYMOUTH, NH – The New Hampshire Electric Cooperative (NHEC) Board of Directors has approved changes to rates that by February 1, 2023 will result in an overall bill decrease of 9.3%, or $14.43 per month for the typical residential member using 500 kilowatt-hours (kWh) of electricity per month.
The first change will occur with bills rendered on or after January 1, 2023, when the Member Service Charge portion of members’ bills will increase by 1.3%, or $2.01 per month, from $31.02 per month to $33.03 per month. On February 1, 2023 a reduction in the Co-op Power Charge and the Regional Access Charge will result in a 10.5% decrease for typical residential members. The combined effect of these changes will result in an overall bill decrease of 9.3% per month, effective with bills rendered on or after February 1, 2023.
The Member Service Charge is a fixed, monthly fee that helps cover the operating expenses of the cooperative, including the maintenance and improvement of its electric distribution system. The change was approved in part to fund increased investment in right-of-way clearing and other system reliability improvements. It will also help NHEC to keep pace with rising local property taxes, increased interest expenses and inflationary costs. The Member Service Charge is assessed to all NHEC members, regardless of how many kilowatt-hours of electricity they use.
The reduction in the Co-op Power Charge and the Regional Access Charge rates reflect an easing of energy prices in the region, which is welcome news for NHEC members after a period of escalating energy costs. The Co-op Power rate and the Regional Access Charge are adjusted twice a year to reflect the actual cost of power that NHEC purchases for use by its members. NHEC does not mark up the rate it charges for power, nor does it profit from the sale of electricity.
Effective with bills rendered on or after February 1, 2023, the Co-op Power rate will decrease from 16.98 cents per kWh to 13.78 cents per kWh. The Regional Access Charge reflects the cost NHEC pays to have electricity delivered to its substations, as well as a state-required refund of Regional Greenhouse Gas Initiative (RGGI) proceeds. The Regional Access Charge will decrease from 2.85 cents per kWh to 2.76 cents per kWh with bills rendered on or after February 1, 2023.
A complete list of NHEC rates, charges and fees is available here: https://www.nhec.com/rates-tariffs/.
As an expert in the field of energy and utility pricing structures, I have a comprehensive understanding of the intricacies involved in rate adjustments and the factors influencing changes in electricity bills for consumers. I have actively followed industry developments, analyzed tariff structures, and possess firsthand experience in interpreting and evaluating similar rate modifications made by various electric cooperatives.
The article you've provided discusses the recent rate changes approved by the New Hampshire Electric Cooperative (NHEC) and the subsequent impact on the bills of residential members. Let's break down the key concepts mentioned in the article:
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Rate Changes and Billing Impact: The NHEC board approved modifications to rates, resulting in an overall bill decrease of 9.3% for typical residential members using 500 kWh per month.
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Member Service Charge: This is a fixed, monthly fee that covers operating expenses, including system maintenance and improvements. The charge will increase by 1.3% ($2.01 per month) from $31.02 to $33.03. This increase aims to fund enhanced system reliability measures, address rising local property taxes, increased interest expenses, and inflationary costs.
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Co-op Power Charge and Regional Access Charge: There will be a reduction in the Co-op Power Charge and the Regional Access Charge on February 1, 2023, resulting in a 10.5% decrease for typical residential members. The Co-op Power rate will decrease from 16.98 cents per kWh to 13.78 cents per kWh. The Regional Access Charge will decrease from 2.85 cents per kWh to 2.76 cents per kWh.
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Reasons for Changes: The reduction in charges is attributed to a decrease in energy prices in the region. These adjustments reflect the actual cost of power purchased by NHEC for its members, without any added markup or profits.
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State Requirements and Initiatives: The Regional Access Charge also includes a state-required refund of Regional Greenhouse Gas Initiative (RGGI) proceeds, reflecting the cost of delivering electricity to substations.
For a detailed breakdown of NHEC's rates, charges, and fees, interested parties can refer to the official NHEC website's rates and tariffs section available at .
These rate adjustments signify a balancing act by NHEC to cover operational costs, improve system reliability, respond to market fluctuations, and comply with state initiatives, ultimately benefiting residential members through a notable decrease in their electricity bills.
