Fuel costs are impacting us all nationwide – at the gas pump, in the grocery store, in the cost of goods and services across the board – and in energy bills. Our power generation and transmission provider, Seminole Electric Cooperative, has been hit with $144 million in increased fuel costs – a 34% increase; unfortunately, it appears that will only be going up.
What does that mean for our members? A $3.1 million increase in unbudgeted fuel costs so far this year. As a not-for-profit electric cooperative, providing electricity at-cost, we have to modify our Wholesale Power Cost Adjustment to meet fuel costs. We began the year at $145.65 per 1,000 kWh. As of June 1, 2022, we have adjusted to $160.00 per 1,000 kWh to recover the increase in fuel costs.
We understand our members are being hit at every turn and we do not make these changes lightly or without heavy hearts. Many of our employees are members right along side of you all, and feel the pinch with you. With less than seven meters per mile, we have a fraction of the number of members bearing the costs of maintaining our system as neighboring utilities, but we are certainly striving to keep rates as low as possible. We know times are tough and getting tougher. Our aim is to provide safe, reliable, and affordable power to our members and communities with exceptional service. Nothing seems affordable right now, and we know it. We’re not pleased with the current situation in our world either. Just know that we will reduce charges to you accordingly as soon as market costs allow.