July 2005

Rates to Remain Stable

An important message from CEO Ronnie Lee

Energy prices affect each of us. Since we're not-for-profit, Walton EMC can offer you the lowest possible price for your electricity needs.

Walton EMC Board members and I closely observe the market's energy prices year-round, but we've noticed one clear pattern over these past months—a steady increase—just as you've noticed an increase at the gas pumps.

Energy prices move in sympathy with each other. The cost of natural gas, coal, diesel and other fuels have increased along with gasoline. While electricity remains the cheapest form of energy, the costs of the fuels used to generate it have gone up.

Coal and natural gas power plants are becoming more costly to run for reasons other than rising fuel costs. The government continues to tighten regulations; meanwhile, the operating standards for power plants are being raised to reduce emissions and improve air quality.

For these reasons, energy prices have increased. But Walton EMC's rates have not changed. Our rates are the same now as they were eight years ago. We realize the energy business isn't the same as it was then.

The co-op pays for the energy customer-owners use, which is passed on each month. You also pay for service costs. This includes delivery of electricity to your home or business, equipment–electric lines, poles–and any maintenance.

Today's increasing market prices force Walton EMC to take action. Until the wholesale price of electricity decreases, Walton EMC must add a wholesale power cost adjustment. This makes up for the difference in current market prices and the power costs Walton EMC has already encountered.

The power costs adjustment is necessary for Walton EMC to keep up with the market and remain financially sound, as we know you want. If Walton EMC did not add a cost adjustment to the bills, we would be paying more for energy without any revenue to cover the additional costs.

We haven't had a positive power cost adjustment since 1992. Even then, the adjustment was minimal.   The cost adjustment is temporary and hopefully will not appear on your bill long. Once prices settle, the cost adjustment can be removed.

Electric rates will not change. Only a line item, labeled WPCA, will be added to your bill to represent the wholesale power cost adjustment.

Look for updates in the Realite . We keep your best interest in mind in every decision of this co-op. It's our business—serving you and providing you reliable electricity.

More Information: US Department of Energy

Q & A

Q:  Why is a power cost adjustment necessary?

A:  Today's market prices for energy are a lot higher than they were 10 years ago.  The cost adjustment is necessary for Walton EMC to keep up with the market until powercosts settle.

Q:  When will the adjustment take place?

A:  The power cost adjustment will appear on your July bill.

Q:  How long will the adjustment be added to my bill?

A:  The cost adjustment is temporary.  It will only be added until power costs go back down.  Once prices settle, the adjustment can be removed.

Q:  How much will this add to my bill?

A:  The addition will be minimal.  Only a few dollars should be added each month.

Q:  Will electric rates increase too?

A:  Rates will not be affected.

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