Clay Electric Co-operative, Inc. (CECI) is a nonprofit organization. Although we operate as a nonprofit, we still need enough revenue to service, maintain and upgrade our system. It is a difficult task trying to keep rates low while also maintaining aging infrastructure. It is as difficult now as it has ever been to keep rates low with the increased costs of equipment, materials and wholesale power. Costs are up across the board and have in some cases doubled for necessary material. Some sizes and types of poles, which are the lifeline of supplying power to the membership, have more than doubled in the last two years. Wire and transformers increased by over 50%. There are many reasons for the increases in material costs, some of which are supply and demand issues and new government regulations.

Our goal is as ever to provide safe, reliable and exceptional service to our members, and we continue to do so while trying to keep costs as low as possible.

As we navigate through these times, the management and Board of Directors of Clay Electric Co-operative continually discuss the finances of the cooperative. As we look at the continued cost increases for material, equipment and power that we use every day to keep the lights on, we sometimes must make hard decisions on the rates we charge our members. Unfortunately, that time has come. Your co-operative has been absorbing these costs for some time, but we must now look at making a small increase on our members’ bills to help offset some of the cost increases.

On the July bill for June usage, we will be implementing a $6 increase to the members’ facility charge. This facility charge is the base charge that all members pay to help to cover a portion of the costs to operate the cooperative. A major fixed cost the facility charge helps pay for is debt service. Other major costs the cooperative needs to cover are materials, equipment, trucks and daily operational expenses. This small increase spread over the membership will help offset some of the cost increases that we are experiencing while minimizing the increased burden on our members’ bills.

We will be performing a cost-of-service study early next year to inform us of any further rate adjustments needed to continue leading the cooperative in a fiscally responsible direction. These studies are performed every few years to make sure that the rates we charge reflect the revenues that are needed to continue providing services to our members and maintain our daily operations. Southern Illinois Power Cooperative (SIPC) is our wholesale power provider, and they are in the middle of their own cost-of-service study. Once their study is completed and they have made any adjustments they feel are necessary for their own needs, it will be the appropriate time for us to begin our own study.

As of Jan. 1, 2023, SIPC implemented a 4% increase on energy and demand charges to CECI. The increase in cost for coal and natural gas used to produce electricity are the main drivers for the increase in 2023. We will continue to work with our power provider to bring our members the lowest energy rates possible.

As your local cooperative, we will continue to look for ways to save money and pass those savings onto our membership while providing safe and reliable service to our members.

Don’t forget to be on the lookout for your member number in the center section of this magazine. There are three member numbers hidden in Clay Electric News. If you find your number and give us a call, you win $5 off your next bill!

Cost Increases