Your Rates in 2007
A message from Dwight Brown, President/CEO of Cobb EMC.
It's in the news often. "Utilities Increase Rates" ... "Energy Rates on the Rise"...
Cobb EMC has been different. We have reported to you over the years about changes we have made in the way we purchase power. These changes have allowed us to avoid a rate increase for 14 years. Cobb EMC's last rate increase was in February 1993. In addition, the Wholesale Power Adjustment (appearing on your bill each month), which reflects the fluctuation in costs associated with the generation and purchase of electricity, has either been zero or a credit for those same years until January 2006.
We are also very proud that during the years since 1993 we have actually instituted rate decreases and have been able to rebate $33 million to you. Each year it becomes more challenging to keep your costs from going up while all costs associated with running our business have increased, such as fuel, equipment, labor and insurance.
As we began preparing our budget, it became apparent that containing costs would be tough. After many hours of preparation, my staff and I presented your Board of Directors a budget that would not require a rate increase in 2007. However, we requested, and the Board approved, the flexibility to revisit the budget very quickly if the market forces change causing our cost of wholesale power to increase.
As you know, many things beyond our control affect the cost of electricity; things such as extremely cold or hot weather, hurricanes, railroad problems, Eastern oil prices, and the list goes on. There will be no rate increase in 2007 unless wholesale power costs increase above what we anticipated in our budget. If that should happen, then it would be necessary to reflect those costs in the Wholesale Power Adjustment on your bill.
It is everyone's desire at Cobb EMC to keep your cost flat, but I wanted you to be aware of the situation so there will be no surprises to you if we must increase your cost during the year. Also in 2007, we will examine all our different rates to be sure each rate classification fairly recovers the cost of providing service to the customers within that rate class.
A "Cost of Service" study should be concluded soon and results of this study will be part of the consideration as we determine costs and rates for 2008. I will continue to keep you informed as the year progresses. We look forward to a new year but with the same old commitment—we will continue to keep your rates competitive and as low as possible.