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RATE CHANGE STARTING MAY 1st

Apr 10, 2017

Dear Member-Consumers:

Beginning with your billing dated June 1st, 2017, we will be implementing new retail rates based on recent studies completed by an outside consulting firm specializing in cost of service and retail rate studies for electric cooperatives.  The consultant’s retail rate recommendations were reviewed by your Cooperative Board and sent back to Management and our Staff for revisions and any areas for reductions. Upon our review and recommendation, we made some reductions and, after much discussion, the new rates were approved by your Board of Directors in March.  While the magnitude of the increase varies based on your monthly usage/rate classification, the new rates are designed to provide an overall increase in electric revenues of approximately 5.25% for both regular and off-peak rates.

Rural residential consumers using 1,300 kilowatt-hours (kWh) per month will see an increase of approximately $8.50 per month.  Urban residential consumers using 800 kWh per month will see an increase of approximately $5.50 per month.

As a non-profit organization, the only reason we have for raising rates is to generate sufficient revenues to cover our operating costs and an operating margin needed to satisfy our mortgage covenants.  We continue to work very hard at controlling our operating costs.  In fact, based on the most current data, we are among the lowest cost Electric Cooperative’s in South Dakota for day-to-day operating costs per member.  Wholesale power costs, depreciation, interest, taxes and operating margins make up the balance of our costs that must be recovered through our retail electric rates.  Wholesale power rates increased approximately 8% this January and year to date are up nearly 10%.  Wholesale power costs make up over 74% of our total cost of providing electric service and have driven rates for the past 15 years.

As a member of Southeastern, you can help control energy costs.  If you don’t currently participate in one of our load control programs for water heaters, heating and cooling, grain drying, irrigation and commercial accounts, we encourage you to look into the savings available through these options.  For those currently participating, we want to thank you and encourage your continued participation.

To give our members easy access to more information on their electric usage, we offer an application called the “SmartHub”.  We strongly encourage you to download this application onto a mobile device or simply log onto Southeastern’s web site to take advantage of the SmartHub technology.  If you don’t already use it, we would also encourage you to consider signing up for on-line payments and paperless billing.  Another great payment option is automatic payments out of a checking or savings account.

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If you have any questions or need additional information, please call 1-800-333-2859.

Comparison of Rate Components

Rural Residential Rate

Urban Residential Rate

Old Rate

New Rate

Old Rate

New Rate

Monthly Rate

 

 

 

 

Facility Charge

$28.00

$33.00

$20.00

$20.00

1st 600 kWh

$0.1300

$0.1300

$0.1100

$0.1175

Excess kWh

$0.0810

$0.0860

$0.0810

$0.0860

 

 

 

 

Dual Fuel/Electric Heat Rate

$0.0560

$0.0590

$0.0560

$0.0590

Controlled Water Heater Credit*

$4.00

$4.00

$4.00

$4.00

* - water heater credit is applied to kWh use from 300 to 700 kWh.

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