Rate Increase

Fellow members,

As I'm sure you're all aware, effective April 1, 2012, a rate increase will take effect on all YREC members' bills.  It is never a pleasure to announce a rate increase of any kind for any reason, I assure you.  I have no desire to see the number of barbecue I am invited to this summer decline!

However, the fact remains that increases in wholesale power, as well as country tax adjustments, make this increase unavoidable.  This is particularly unfortunate given that in 2011 we were able to decrease our members' bills.  At YREC, we take every possible measure to reduce operating costs.  We never lose sight of the fact that our primary mission is providing safe, reliable, and efficient electric service to our members at the lowest possible price.  

YREC does not generate any electricity whatsoever.  We buy power at a wholesale rate from the regional power pool.   About $0.69 of every dollar a YREC member pays the cooperative covers the cost of power. The remaining $0.29 cents covers operating costs such as lines, poles and utility trucks.  Anything over operating costs is assigned to members every year in the form of capital credits.

Increases such as this, which are out of the hands of YREC, are one key driver to our changeover to smart grid technology.  Using the smart grid as a tool to remove inefficiency, and lower demand, will help all of us lower our bill despite increases in wholesale power.

I hope this will help clarify the need for this increase.  I understand that the tough economy has been no kinder to north Mississippi than elsewhere, and I reiterate that your electric cooperative remains committed to finding ways to keep the cost of service as low as possible.

            With regards,

            Manager Bill Faulkner