Electricity remains one of the best values in our daily lives, even as costs rise across all industries. Consider the cost of everyday items—groceries, fuel and household goods have all seen significant price hikes over the last few years. Despite these increases, electricity remains a bargain given its essential role in our homes and businesses. For less than $6.00 per day, the average residential member can power their heating and cooling systems, refrigeration, lighting and technology that keep life running smoothly.

While a rate increase is never ideal, it is necessary to ensure that we continue delivering safe, reliable power to our members. The primary driver of our retail rate adjustment is the rising cost of wholesale power. We purchase electricity in bulk to distribute to our members, and those costs have surged due to increased fuel prices, regulatory changes and supply chain constraints. Additionally, the costs of materials and equipment required to maintain and expand our system have skyrocketed.

For example, three years ago, a new line truck for installing poles would cost around $285,000. Today, that same truck costs between $350,000-$400,000. Similarly, a substation transformer we bought five years ago for $435,520 now costs $1.3 million—with a 30-month delivery time. These rising costs make it more expensive to maintain and upgrade the infrastructure that ensures your power stays reliable.

Even with this adjustment, electricity remains one of the most cost-effective and essential services in your home. We appreciate your understanding and support as we navigate these challenges together.

Your Board of Directors has taken a strategic and measured approach to managing these financial challenges. In 2024, they made the difficult decision not to issue a general refund of capital credits. This decision was not taken lightly but was required to balance rates, reliability investments and financial sustainability. By holding capital credits and managing costs, the cooperative has been able to delay and minimize the overall impact of the rate adjustment on members.

As I mentioned in my February article, we conducted a comprehensive Cost of Service and Rate Study by an independent rate consultant, Booth and Associates. This study evaluated the cooperative’s expenses, wholesale power cost projections and financial sustainability to ensure rates remain fair and equitable while maintaining our mission of providing reliable service. As a result of this study, the Randolph EMC Board of Directors has approved a rate adjustment effective May 1, 2025, for all rate classes.

The overall increase in revenue required is 8.54% over our current base rates. However, this doesn’t mean that each residential bill will go up 8.54%. It reflects the increases in material and wholesale power costs that have outpaced our retail rates. If you compare the current base rate and the Wholesale Power Cost Adjustment (WPCA) factor, our residential members, on average, will see only a 2.43% increase over last month’s bill.

As a cooperative, we remain committed to keeping rates as affordable as possible while maintaining the high level of service our members expect. Even with this adjustment, electricity remains one of the most cost-effective and essential services in your home. We appreciate your understanding and support as we navigate these challenges together. As always, we will continue to prioritize our rates to reflect what is in the best interest of our members.

Cooperatively yours,
Dennis Mabe, Chief Executive Officer