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 nine 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.

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.

The primary reasons include:

• Inflation and Rising Costs: Significant increases in material, service, and labor costs due to inflation.
• Power Cost Increases: Unprecedented rises in power costs from 2021 through early 2023.
• Supply Chain Shortages: Challenges in obtaining necessary materials and equipment.
• Infrastructure Investments: The need to maintain and improve our electrical system to ensure reliability.

Members can access our rate case filings through the Arizona Corporation Commission’s (ACC) website. Additionally, our audited financial statements and tax returns are available on our public website (www.ssvec.org) to ensure transparency.

We value member input. Members can provide feedback by: 

• Contacting SSVEC Representatives: Reach out directly with your thoughts and concerns.  A portal for requesting information or making comments directly to SSVEC is available at SSVEC’s Rate Case Website, which is accessible via the following link: https://ssvec-rateinfo.org.
• Participating in ACC Proceedings: Submit comments to the ACC regarding the rate case.
• Visiting SSVEC’s Rate Case Microsite: Members can visit SSVEC’s Rate Case Website (https://ssvec-rateinfo.org) to review documentation, upcoming hearings, and submit comments and questions as the rate case proceeds.
• Visiting the ACC Website (https://azcc.gov): The Arizona Corporation Commission will have information for members on SSVEC’s rate case, publicly available filing materials, hearing dates and public comment opportunities.

We have managed to avoid a rate increase for nine years by strictly controlling costs. However, further postponement could compromise our ability to provide reliable service. While cost-cutting measures have been considered, they may lead to reduced services, delayed maintenance, and higher costs in the future.

We are committed to educating our members through:

• Printed Materials: Providing updated printouts showing old and new rates for easy comparison.
• Online Resources: Offering information on our website (www.ssvec.org) as well as the Rate Case Website (https://ssvec-rateinfo.org), including diagrams and explanations of cost structures.
• Energy-Saving Programs: Continuing our energy-saving and conservation initiatives at no cost to members.
• Member Services Representatives: Our team is available to explain changes and answer questions.

Yes. SSVEC was the first cooperative in Arizona to achieve its renewable energy goal and continues to invest in renewable energy when economically viable. We will maintain our energy-saving and conservation initiatives, and members are encouraged to participate to reduce their energy costs.

Personnel costs are a significant portion of our operating expenses, but we have maintained a workforce of approximately 190 employees—the same number since our last rate case in 2015. For a detailed breakdown, we can provide specific financial data upon request.

The cost varies based on several factors, including infrastructure, maintenance, power generation, and distribution expenses. We are preparing detailed diagrams and materials to illustrate these costs, which will be made available to members.

We are updating our printed materials to include a side-by-side comparison of old and new rates. These will be available to members to help understand the changes and the impact on their bills.

We are introducing several programs:

• Soft Credit Checks: Covering the cost of credit checks, and waiving deposits for members with acceptable credit.
• Line Extension Credits: Offering up to $2,000 in credits for new residential service or upgrades up to 400 amps.
• Economic Development Program: Allowing new commercial accounts to spread deposit payments over six to twelve months, depending on the deposit amount.

The cumulative rate increase of 7.79% over nine years is lower than the U.S. national average inflation rate. This modest increase reflects our commitment to keeping rates as low as possible while addressing rising operational costs.

The rate application has been filed with the ACC, and a procedural schedule will be established, including opportunities for public comment and hearings. We anticipate the new rates to be effective no later than January 1, 2026. We will keep members informed throughout the process.

We understand that some members may face financial challenges, and we’re committed to supporting all members of our community. Our service territory consists largely of members with modest means. Implementing an economic adjuster would result in members who are already struggling subsidizing others who are struggling even more.

We believe the most effective way to assist all our members is by providing electricity at the lowest possible cost for everyone. As a non-profit cooperative utility, we operate solely for the benefit of our members, and our rates are significantly lower than those of investor-owned utilities.

Additionally, we partner with various community organizations that offer financial assistance and support services. If you’re having difficulty paying your bill, please contact us, and we can guide you toward resources that may help.

We are actively expanding our investment in renewable energy, including solar projects, often in collaboration with our generation cooperative, AEPCO. Recent projects, like the McNeal Solar and Battery Storage facility, demonstrate our commitment to increasing renewable energy in our power mix.

However, while solar energy contributes to lowering overall costs, it also has limitations. Solar power is intermittent—it only generates electricity when the sun is shining. To ensure a reliable power supply at all times, especially during nights or cloudy days, we need firm generation sources like fast-ramping natural gas plants to fill the gaps when solar generation is not available.

Large-scale integration of solar energy also requires significant investments in battery storage and grid infrastructure. We are exploring other renewable options like wind energy, but wind projects often require transmission lines from areas with steady wind resources to our service territory, which involves additional infrastructure and costs.

Our goal is to balance the benefits of renewable energy with the need for reliable and affordable power for all our members. We will continue to invest in renewable projects when they are economically viable and can contribute to lowering member bills.