by Jarrod Campbell, OVEC CEO
For the first time since 2018, Osage Valley Electric Cooperative (OVEC) is adjusting their electric rates. In late 2022, our power supplier, Associated Electric Cooperative, Inc. (AECI), informed their transmission and distribution cooperatives of the impending power supply rate increase scheduled for 2023.
While the majority of electric cooperatives in the State of Missouri increased their rates in 2023 with AECI’s announcement, the OVEC Board of Directors and staff worked to maintain the electric rates for the past year. And although we knew it would only be a matter of time before we were forced to increase rates, we pledged to hold rates steady as long as possible without causing any negative financial implications to the Cooperative.
The price of materials we purchase for day-to-day operations (poles, wire, meters, transformers, etc.) have increased substantially due to inflation, rising transportation costs, and supply chain disruptions. None of these items are an extravagance; they are a necessity for our operations.
Although material prices have increased, our largest expense for the Cooperative is wholesale power. And although we strive to keep your electric rates low, even utilizing revenue from our fiber operations, this increase is a cost our Cooperative simply can’t ab- sorb, resulting in the electric rate increase.
You are probably asking “how much will this increase be?” Our service availability fee will increase $4 per month, from $31 to $35. Our residential members will see an increase in kilowatt-hour rates from $0.08053/kWh to $0.08453/kWh. Billing Demand will increase from $4.60/kW to $5.60/kW. This rate increase equates to an average increase of 9% for our members. You may access all of the rates on our website at www.osagevalley.com under the “Billing” tab, then “Rates” tab.
This rate increase will be effective April 1, 2024, and will be reflected on your May 1, 2024, bill. We wish we did not have to make the decision to raise rates, but the current economic environment is driving these circumstances.
Please know these new rates will keep your Cooperative in a strong position of providing safe and reliable power. We’ve done our best to ensure we can meet the needs of the Cooperative and we will continue to work hard every day to ensure the service you are paying for is the best possible value.
Thank you for your support.
