At Pee Dee Electric, providing reliable and affordable power is at the heart of everything we do. The challenge of serving new members and making necessary improvements to our electric distribution system can be difficult while keeping the cooperative financially stable. While difficult, it is a challenge we have been preparing to face.

In April 2020, the cooperative announced the need for a rate adjustment to maintain Pee Dee Electric’s financial stability, but the cooperative’s Board of Directors quickly canceled the adjustment due to the impact the COVID-19 pandemic was having throughout our area. Since then, the cooperative has implemented a TIER adjustment, collected through the fuel factor on your electric bill, to collect enough revenue to keep the cooperative financially sound during this crisis.

Now that the effects of the pandemic have diminished, Pee Dee Electric needs to implement the rate adjustment planned in 2020. The cooperative is negatively impacted by high inflation, just as you are at home. The electric industry is facing shortages in materials used to build power lines. As a result, we are experiencing unprecedented material cost increases. The cooperative has also been affected by higher fuel and other operating costs associated with our business. These increased costs are a significant driver in needing this rate adjustment.

Pee Dee Electric is a not-for-profit electric utility – this means we do not adjust rates to generate profits.

In April, I announced the cooperative hired a third-party consultant to conduct a cost-of-service study and rate design study. The purpose of these studies was for an unbiased outside firm to determine whether the cooperative’s current electric rates were adequate to meet our financial and system reliability objectives. The consultant has determined a rate adjustment in the range of 6% to 8% is needed for the cooperative to remain financially sound and have the funds necessary to serve new members and continue providing reliable electricity to all members.

Once the Board of Directors has considered the consultant’s study and made a final decision on the percentage and timing of the rate adjustment, we will inform our members. I expect the adjustment will be effective in the February or March time frame.

While we understand rate adjustments can have an impact on everyone’s budget, we want members to know that this decision was not entered into lightly. Delivering reliable electricity is a capital and labor-intensive business. It requires a lot of materials, equipment, technology and people to ensure electricity is available when you want and need it.

Pee Dee Electric is a not-for-profit electric utility – this means we do not adjust rates to generate profits. Rates are adjusted to cover the cost of doing business, and then only when absolutely necessary. In fact, it has been over 5½ years since the last rate adjustment. Electricity is still a great value when compared to other goods and services we pay for, especially when you consider the many conveniences we enjoy through the use of electricity.

I firmly believe this rate adjustment provides the proper balance between maintaining the quality of service members expect and deserve from Pee Dee Electric, having the funds available that are necessary to meet the financial requirements of our lenders and the price you pay for electricity.