What does it cost to construct NEW power lines? Monthly FIXED Charge allows DECOUPLING from VARIABLE Energy Revenue!!
INTEGRITY & ACCOUNTABILITY SIEC Motto: "YOU HAVE A VOICE WITH US"
SIEC Board Meeting Summary August 2014
- Approved work plan amendment for LED Security Light change out - Approved CPA three year agreement - Reviewed Solar Strategy Team considerations including BILL INSERT - Reviewed Electric Rate Concepts - Approved Revolving Loan Fund application - Previewed Advisory Committee Touchstone (ACT) presentation - Determined need for Strategic Thinking Session in near future - Approved Labor Committee recommendations - Appointed the Counting Committee for the 75th SIEC Annual Mtg
Summary of a few of the Six Year Work Plan Costs: (Please contact our office if you want more info on the even more expensive cost of generation & transmission lines)
18 miles of Singal Phase Overhead $58,000/mile
21 miles of Three Phase Overhead $88,000/mile
13 miles of Three Phase (heavier conductor) $115,000/mile
Monthly FIXED Charge allows DECOUPLING from VARIABLE Energy Revenue!!
Every electric company has two kinds of costs: fixed and variable. Fixed costs include personnel, equipment and distribution lines that must be paid despite weather conditions or energy sales. Variable costs are fluctuating costs such as the price paid for electricity and the amount of electricity used by the member. Revenue decoupling is just a way of separating the revenue, the fixed cost of distribution from the ups and downs of electricity consumed.
Revenue decoupling enables full support of energy efficiency as required by the Iowa Utilities Board (IUB) and its resulting environmental benefits without having to sacrifice financial stability. Utility rate structures are based upon averages. The advantage to YOUR Co-op is less undercharging in moderate weather. The advantage to YOU is less high bill complaints in extreme weather.
Revenue decoupling only addresses the delivery portion, about 25%, of YOUR total bill. It is important to remember that the cost of the electricity, the actual energy consumption, makes up the majority of YOUR bill – typically about 75%. As YOU choose YOUR consumption it is reflected in the supply portion of YOUR bill.
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