Wake Electric Announces Residential Rate Adjustment
In response to the current economic conditions and the need to sustain our commitment to providing reliable electric service, Wake Electric Membership Cooperative will be implementing a residential rate adjustment, effective January 1, 2024. We understand the concerns of our members, and we are taking this step with sensitivity to our members financial well-being. Starting in the new year, the residential rate will increase from 11 cents per kWh to 12 cents per kWh. We want to emphasize that there will be no change to the facility charge. Additionally, our other rates will not change.
Why are rates increasing?
- Inflation: Inflation affects every aspect of our economy and utilities are not exempt from the rising costs. To ensure the continued reliability and quality of our services, it’s imperative that we keep pace with the rising costs brought about by inflation.
- Infrastructure Investments: Electric cooperatives, like any utility provider, must maintain and upgrade our infrastructure to meet the needs of our members. This includes the maintenance of power lines, substations, and other vital equipment. Investing in modern technology and resilient infrastructure is crucial for uninterrupted service and to accommodate the growing number of homes and businesses we serve.
- Energy Transition: As we move towards a more sustainable and environmentally friendly energy future, there are costs associated with the transition to cleaner energy sources such as wind, solar, and hydroelectric power. While these sources have long-term benefits, the initial investments and operational expenses can be higher, which may necessitate rate adjustments in the short term.
- Increasing Demand: Our cooperative continues to grow as more members join our network. This growth in demand for electricity requires us to expand our capacity, which involves capital expenditures. In turn, these investments in additional generation and distribution infrastructure can impact rates.
- Wholesale Power Costs: We often purchase a significant portion of our electricity from wholesale suppliers. Fluctuations in the cost of wholesale power can directly affect the rates we charge our members. Factors such as fuel prices, supply and demand, and market dynamics can all influence these costs.
How does Wake Electric compare?*
Our cooperative has always been dedicated to delivering affordable and dependable electric service to our members. We acknowledge that any rate increase can be burdensome, and we want to assure our members that this adjustment has been carefully considered. In fact, in recent years, we’ve been fortunate enough to be able to reduce rates on two separate occasions, demonstrating our ongoing commitment to keeping costs as low as possible for our members whenever possible. We’re proud to have some of the lowest rates in the region, even after an increase in our residential rate.
| Utility | Base | Energy | Total |
|---|---|---|---|
| Wake Electric | $15 | $120 | $135 |
| Duke Energy | $16 | $132 | $148 |
| Wake Forest Power | $25 | $136 | $161 |
*In a 1,000 kWh monthly home
Looking to reduce your electric bill?
Currently, Wake Electric is not making any modifications to the pricing of our special rate programs. If you’re interested in reducing expenses, we encourage you to explore our special rate programs including our residential Time of Use rate program. Within our Time of Use rate program, members incur higher charges during on-peak times when demand is elevated and enjoy lower rates during periods of reduced demand. Members can enjoy discounted prices during off-peak hours (22 hours a day) by shifting high-energy loads from on-peak times (2 hours a day). You can find additional information about Time of Use and our other special rate programs.
| Residential Rate | TOU Off-Peak | TOU On-peak |
|---|---|---|
| 12 cents per kWh | 8 cents per kWh | 24 cents per kWh |
How will Wake Electric continue to invest in the future?
The decision to adjust rates is necessary to accommodate the increasing costs associated with maintaining and enhancing our electric infrastructure. By making these rate adjustments, we can continue to invest in the upgrades needed to keep our electric system reliable and resilient for our members. Notably this year Wake Electric built a new substation in Knightdale, ensuring improved reliability in the area. Ensuring ongoing investment in the growth of our cooperative is crucial to our ability to provide you with uninterrupted electric service both now and in the future.