Santee Cooper proposes two-year rate increase beginning in November
Last Updated on 9/4/2010
Published on 4/26/2009
Electric rates for Santee Cooper customers may be increasing in the next two years after an approval by the utility's board of directors.
The panel gave the OK to consider a proposed average annual increase for residential customers of 7.5 percent beginning in November and 7.6 percent in November 2010.
That would mean an average bill increases of $6.47 a month beginning this November, and an additional $8 a month on average beginning November 2010, for a residential customer consuming 1,000 kilowatt hours a month.
Commercial customers would see average annual increases of 5.6 percent beginning in November 2009 and 5.3 percent in November 2010, and industrial customers would face average annual increases of 2.9 percent in 2009 and 4.6 percent in 2010.
If approved, the rates would mark the state-owned utility's first base rate increase since 1996.
Additionally the Board will consider a new rate structure that consolidates similar rate categories and implements a seasonal rate that is lower in non-summer months and higher in the summer, when it costs more to generate power.
"Since our last rate increase in 1996, Santee Cooper has nearly doubled our generating capacity and invested more than $3 billion in new generation, transmission and distribution, all to serve a customer base that has grown by nearly 60 percent," said Lonnie Carter, Santee Cooper president and chief executive officer.
"We know that this is an especially difficult economic time for many people. Unfortunately, the cost to produce power has significantly increased, as has the cost of building new generation and equipping it with the best available environmental control technology."
Santee Cooper has proposed a rate restructuring plan for residential customers that would:
* Reduce the number of residential tariff offerings through consolidation of similar rate classes
* Implement seasonal energy rates by establishing higher energy prices for monthly bills from June through September and lower energy prices for monthly bills from October through May: Summer energy rates would be one cent per kWh higher than non-Summer rates for the Summer of 2010, and two cents higher for the Summer of 2011
* Revise the level of fuel cost captured in base rates
* Close the Good Cents tariff to new participants
* Increase the monthly Customer Charge to reflect cost increases in the equipment and facilities required to connect and service customers
"In restructuring our rates, Santee Cooper wanted to better reflect the seasonal differences we face in the cost of generating power," Carter said. "At the same time, it is another opportunity for us to work with customers and help them use our programs and resources to conserve energy in their homes and businesses."
The board vote sets in place a period of public comment, which runs through July 5.
Customers are invited to comment on the new rates and rate structure and can submit their comments by mail or via the utility's Web site, www.santeecooper.com/rates.
Additionally, Santee Cooper will collect oral comments at a series of public meetings beginning May 26 and running through June 4, and again during a full Santee Cooper Board of Directors meeting July 27.
The board will consider all public comments and then vote on the proposed rate adjustments at its August meeting.
If approved, the first rate adjustments would take effect Nov. 1.
