(December 27, 2023)
GCEA Announces Proposed 5.0% Overall Rate Increase, Effective March 1, 2024
On December 20, the GCEA Board of Directors approved publication of a proposed 5.0% overall rate increase for 2024, set to take effect on March 1, 2024. This increase spans all rate classes and will be distributed across the monthly service availability charge, demand charge (for large power and industrial accounts), and the energy or kWh charge, as indicated by our most recent cost of service study.
The key details are as follows:
- GCEA is absorbing a significant portion of its increased costs to mitigate the impact on its members.
- GCEA is postponing the rate increase to March 1, 2024 to further mitigate the impact.
- Residential rates are increasing 5.3% on average.
- The average monthly residential member bill will increase $6.84 based on an avg of 704 kWh per month of usage.
- The monthly Service Availability fee will increase by $3.00 for most residential and Commercial accounts.
- January 9, 2024, GCEA member virtual meeting scheduled to review proposed changes.
Several factors contributed to this proposed rate increase, including inflation, supply chain challenges, and a 6.6% rate increase from our wholesale power supplier. Even though GCEA’s cost of wholesale power increases on January 1, 2024, the GCEA Board strategically delayed the rate increase to March 1, 2024, to assist members during the months of highest usage. In doing so, GCEA will absorb approximately $260,000 in increased costs. Moreover, the board opted not to pass on an additional $400,000 of increased annual costs, further mitigating the overall proposed rate increase for 2024.
In managing future budgets and rate increases, GCEA's Board prioritizes cost recovery while maintaining slim margins. As a not-for-profit organization, GCEA seeks to recover costs through its rates, ensuring compliance with debt covenants and providing adequate cash flow for annual debt obligations.
GCEA commits to an annual review of rates, assuring members that any adjustments will be made with care to deliver reliable and affordable electricity. The Board continues to advocate for beneficial electrification as both a solution to climate challenges and a means to curb future rate increases. Increased kWh sales, driven by the shift from fossil fuel sources to electric alternatives in homes & businesses and transportation, are expected to reduce upward rate pressure. Members can help GCEA minimize rate increases by electrifying.
GCEA will hold a virtual member meeting on Tuesday, January 9, 2024, at 6 pm to review rate increase details, listen to member concerns, and answer member questions. To receive a link to the meeting, please visit www.gcea.coop.
The last rate increase GCEA imposed was May 1, 2023, with an overall increase of 3.8%.
To view the complete list of 2024 rate changes, please visit www.gcea.coop.