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October 2017 Rate Increase Information

NGEMC September 2017 Bill Insert

Sept. 2018 Bill Insert announcing the Oct. 2017 rate increase

 

TVA Rate Increase Details:

Effective date

October 1, 2017

Why is TVA increasing rates?

TVA is increasing rates, valley-wide, by an average of 1.5 percent. This increase will affect all TVA distributors, including NGEMC. 

A residential customer using 1500 kWh per month will see an energy increase of $2.31.

TVA’s 1.5 percent increase is a “pass through” increase – meaning the amount collected by NGEMC will all go directly back to TVA.  When TVA chooses to increase the wholesale power cost, NGEMC must pass the increase on at the retail level.  NGEMC purchases 100% of its power from TVA.

Did you know?  

80 cents of every $1.00 that NGEMC collects goes to TVA to purchase electricity. NGEMC operates on the remaining 20 cents.

 

System Support Fee Increase

The System Support Fee will increase by a flat $2.25 per month for residential members.

What is the System Support Fee? This fee helps cover the cost of building, maintaining, and supporting the distribution power grid, including 6,400 miles of power line, right of way, and poles, 34 substations, and related equipment.   This increase will also fund improvements and upgrades to the system for added reliability. The system support fee does NOT affect the cost per kWh – The kWh charge is determined by the amount of power a member uses each month. The System Support Fee is a flat charge to help sustain NGEMC’s power system.

Fees are outlined in NGEMC’s service rules and regulations online at www.ngemc.com. Information on our kWh rates, TVA’s Fuel Cost Adjustment (a TVA charge for fuel in power generation), System Support Fee, and tax information can be viewed at www.ngemc.com/rates.

Rate calculators are available on NGEMC’s website at the above link. Members can utilize these worksheets to calculate their monthly use or to determine how an increase will affect their monthly electric bill costs.  

 

Average annual price increase of several consumer goods such as electricity, gasoline, eggs, and more. A Reminder to Our Members:

NGEMC’s Mission is to provide a reliable, quality, cost-based supply of electricity to our cooperative members. (See the chart at right.) 

As a member-owned, not-for-profit electric cooperative, NGEMC is fully supported by its member-owner-rate payers, receiving no public tax monies or publically/privately held investment funding.

The cost of maintaining the power system is directly affected by vegetation growth and weather related outage events. So far this year, off right-of-way tree related outages have increased by 157 percent, compared to 2016. Large trees 15 to 45 feet from the power line can cause significant damage when they fall, often breaking poles and pulling wire down.  

Storms such as the one in March, which resulted in more than 22,000 power outages, also substantially impact cost.

Electricity remains a good value. See chart and cost comparisons (right). NGEMC operates in a cost efficient manner to keep its rates low.  There has been a significant increase in almost every commodity we purchase – groceries, gasoline, etc. 

 

Resources for Members

Remember energy efficiency and conservation: NGEMC has energy-saving information available on our website and in our lobbies. We also encourage members to take the free TVA Energy Right Solutions online Home e-Valuation at www.energyright.com. Other energy right programs offered by NGEMC can be found in on our Energy Right Solutions webpage

Members, please follow us on our Facebook and Twitter pages for more energy-saving ideas.

Usage history charts and daily consumption and temperature information is available via the member services portal.

 

Cost Saving Ideas for Members:

NGEMC and our energy partners have assembled a list of tips you can use to conserve energy year-round.

See this article from Forbes.com on "10 easy ways to lower your electric bill."

You can also save money on you heating and cooling bills by replacing your air filters regularly. Join FilterEasy today, and never forget to replace your air filters again.

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