A brief explanation of CHELCO's business model:
As a not-for-profit cooperative, CHELCO's bottom line is measured by our member-owners' satisfaction with our safe, reliable service at reasonable prices. CHELCO doesn't make the electricity we use, we buy it from a Generation & Transmission cooperative, PowerSouth. CHELCO's role is to deliver the electricity and provide a variety of energy related services to our members.
The charges on your electricity bill reflect the careful management of CHELCO's costs for wholesale power, operations, maintenance and infrastructure, and prudent planning for the future. Any money remaining after CHELCO's expenses are paid belongs to our member-owners and are called margins. Margins are allocated (re-invested) and/or retired (given to members) as determined by the Board of Trustees who are democratically elected by the general membership.
Costs to begin residential service and monthly charges:
One-time membership fee: $5.00
This one-time fee has remained the same since the cooperative was formed in 1941! It gives you the benefit of membership and is refunded when your membership is terminated.
Security deposit, if required: $150 or twice the average monthly bill, whichever is greater.
A security deposit may be required and is based on individual utility credit rating.
Monthly charge, regardless of energy usage:
- Basic Service Charge (most residential accounts): $26
- Three-phase Service Charge: $37.50
The monthly charge is a standard fee that pays for the expenses associated with delivering and maintaining service to a location.
- Rate: 7.046 cents per kilo-watt hour (kWh)
- **Wholesale Power Cost Adjustment (WPCA)- example rate: 2.2137 cents per kWh
- **Distribution Cost Adjustment (DCA) - example rate: 0.275 cents per kWh
Kilo-watt hour is the common billing unit for electricity. It is the cost of running an electric device calculated by multiplying the device's power in kilowatts, by the running time in hours, by the price per kilowatt hour.
The WPCA is the difference between the wholesale power cost built into our rate and the current actual cost to buy the power. It recoups the difference in price between what we predicted electricity would cost when we set the rate and what it actually costs.
The DCA accounts for changes in costs of all the goods and services other than wholesale power costs that are necessary for doing business.
**Rates shown for WPCA and DCA are for example only - actual rates vary as conditions change but have not fluctuated wildly month-to-month and year-to-year.