Heartland to consider rate increase

In a response to increasing power costs, Heartland Rural Electric Cooperative in Girard is considering increasing its energy rates.
Heartland's Board of Directors will vote on the matter during an 11 a.m. meeting on July 27 at the cooperative's office at 110 North Enterprise Dr. in Girard.
According company documents, the proposal includes doubling the service availability charge, a flat monthly fee, to $30 per month for most customer classes. Some commercial classes will begin to pay a SAG of $90 per month. The increase will "more accurately" reflect the fixed costs of providing electric service, according to Heartland's Web site.
In a statement posted on Heartland's Web site, CEO Dale Coomes said the increase of the SAG will help the cooperative offset the rising costs of providing electricity to its customers.
"By doing this," Coomes wrote, "we accurately recover the costs to make service available for each meter. This has not been the case in the past, however."
According to Coomes, fixed costs have traditionally been included in the energy charge. The increase in the SAG would allow Heartland to consolidate some of its rate classes, according to its Web site.
Heartland is set to increase its revenue by $200,500, or 1.3 percent, if these rate increases are approved. The increase will offset increases in expenses that have occurred since the cooperative's last rate increase in 2002.
But while the fixed cost may increase, the board also is considering decreasing the total energy charge by more than 16 percent. Those members who use 1,000 kilowatt hours would see their bill decrease by 72 cents per month. Those who use more would see additional savings.
The proposal also includes the incorporation of the amount of the Energy Cost Adjustment into the energy charge, which many of the cooperatives' members have requested, according to Coomes. The ECA is a mechanism used in the energy industry to tie electric rates to the cost of fuel for power plants.
"Unfortunately, the cost of fuel has risen the past few years and shows no sign of going down," Coomes wrote. "Our ECA has increased along with the cost of fuel. Many of our members have complained about the cost of the ECA on their electric bills and have requested that it be included in the base rate of electricity."
The public is encouraged to attend the July 27 meeting and express their opinions or voice their concerns.