SSVEC
Rate Case
Explained

 
Understand the reasons behind our
rate adjustment.
Top 3 reasons why SSVEC is updating rates

Keeping Up with Rising Costs

We’re adjusting rates to respond to the increasing costs of materials, equipment, and day-to-day operations. This helps us continue to provide reliable service without compromising quality.

Ensuring Fairness Across All Members

We’re making sure that everyone pays their fair share based on how much electricity they use. This adjustment prevents any one group from overpaying or underpaying compared to others.

Aligning Charges with the True Cost of Service

By aligning our service availability charge with actual costs, we can continue maintaining essential infrastructure that keeps the lights on for everyone.

A message from Jason Bowling, CEO
Sulphur Springs Valley Electric Cooperative

Update on Rate Structure Change

Frequently asked
questions

The primary reason for the proposed rate increase is to address the impact of inflation and rising costs since our last rate case in 2016. Over the past 9 years, SSVEC managed to avoid increasing rates by strictly controlling expenses. However, significant power cost increases from 2021 to early 2023, along with supply chain shortages and inflation driving up material, service, and labor costs, have made it necessary to request a modest overall revenue increase of approximately 7.79%. This increase will allow us to maintain reliable service, invest in infrastructure improvements, and ensure the cooperative’s financial health.

The exact increase will vary based on your monthly kilowatt-hour (kWh) consumption. For an average residential member using 752 kWh per month, the current average monthly bill would increase from $127.41 to $138.66, up $11.26 or approximately 8.83%.

SSVEC aims to distribute the rate increases as uniformly and equitably as possible across all customer types, considering the differing demand factors of each class. Our goal is to ensure fairness while covering the costs necessary to provide reliable service to all members.

We have taken several steps to keep the increase at a minimum:

  • Expense Management: We have carefully examined and controlled operational costs as part of our standard business practices.
  • Power Cost Stabilization: We have agreements that eliminate exposure to power market volatility and have hedged fuel costs used for generation to stabilize costs and member rates.
  • Investments in Renewables: By investing in renewable energy projects when economically viable, we aim to reduce long-term power costs.
  • Member Programs: We are introducing programs like line extension credits, free soft credit checks to reduce deposit obligations for members with acceptable credit, and easing residency requirements to benefit our members financially.

With inflation and supply chain pressures leading to higher prices of fuel, materials, services, and labor, SSVEC’s overall costs have increased significantly from 2014 to 2023. Some materials have increased 200-300%, those costs and so many more are built into the basis for which we are requesting our revenue increase. However, despite these increases, through creative management practices, the SSVEC team has kept our revenue needs more reasonable, which is how SSVEC is keeping its overall revenue request at a modest 7.79%. This overall revenue increase reflects what SSVEC requires to maintain and improve our electrical system.

Regulatory Filings & Notices