Father Time marches on. The year 2018 is history. What will 2019 bring to us?
2018 Margin Rebate
Your cooperative will experience kWh sales approximately 5% above budget for 2018 (pending December use). This coupled with expenses coming in below budget has resulted in net operating margins significantly above our budgeted levels.
Your board of directors approved for these additional margins to be returned to all co-op members during this billing cycle.
Be sure to check your current bill (December 2018 usage) for the amount of your 2018 rebate. The billing line is titled: 2018 Margin Rebate.
The projected $800,000 total margin rebate will be credited on this bill based on your 11-month average use from January through November. This is an immediate and tangible benefit of being a member-owner of your not-for-profit electric cooperative.
2019 Projection
Your Directors approved the 2019 budget during the November board meeting. Once again, we are pleased to inform you that our rates for 2019 remain the same, just as they have every year since the 2013 rate adjustment. Our wholesale power provider, Prairie Power, Inc., has projected a slight increase in their electric rate to us, which will be reflected in the PCA component of our billing.
However, during 2019, staff will coordinate a rate study to follow up on the cost of service study that was completed in 2018. Expenses in general have increased since the last rate adjustment. When coupled with Illinois renewable legislation that provides subsidies for solar and wind, along with the changing nature of electricity use in general, we need to ensure that our revenues collected through our various rate structures are equitable for all members.
Please take time to review the other informative articles featured in this newsletter. We also welcome our newest board member, Lauri Quick, who resides in the Tolono area, representing District 9.
On behalf of your cooperative employees and directors, we thank you, and wish you all a happy, safe, and successful 2019.
Happy New Year!
Bob Hunzinger