At Medina Electric Cooperative, we know that rate changes impact your household budget, and the board does not make these decisions lightly. As a member-owned, not-for-profit utility, our goal isn’t to make a profit for investors, it’s to provide you with safe, reliable power at the lowest possible cost.
To remain financially sound, we must ensure rates cover the actual costs of delivering service to each of our members. As a co-op, any revenue collected in excess of the cost to provide service is returned to members in the form of capital credits.
To maintain competitive rates, we work diligently to optimize expenses and regularly review our financials. Every two-to-three years, Medina EC completes a cost-of-service study through an independent consultant to review our financials and calculate the actual cost of serving our members.
Our most recent study revealed that the customer charge for our general service, seasonal and small commercial rate classes was no longer covering the fixed costs of delivering safe and reliable power.
These costs cover essential operations, including system maintenance, member services, and long-term infrastructure investments that remain constant regardless of your energy usage. This ensures our teams can work safely and efficiently, maintaining a system that is reliable and ready the moment you flip a switch.
While the customer charge has not changed for the last nine years, the cost of materials, equipment and infrastructure has risen significantly. This has put pressure on the financial margins needed to fund essential operating activities like right-of-way clearing, pole inspections and replacements, capacity upgrades, and improving our technology infrastructure to better serve you, our members.
After evaluating multiple scenarios to find the smallest possible increase that would meet our operational needs, the board selected a $3 increase to the monthly charge as the most balanced and fair option.
Impacted members will see this change beginning April 1.
We recognize that any increase in household expenses is significant. Our team remains focused on managing internal expenses and finding operational efficiencies to keep your bills as low as possible. We will continue to prioritize this balance of fiscal responsibility with our obligation to provide the safe, reliable power you depend on every day.
If you have any questions or would like to talk through these changes, please don’t hesitate to contact us at [email protected] or 1-866-632-3532.
Until next time,
Trey Grebe
