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No Rate Increase In New Year's Forecast


By Dan L. Brown, General Manager/CEO


I'm very pleased to announce for the fifth year in a row that we will ring in the New Year without a rate increase!


At their December meeting your Board of Directors approved the 2014 budget, which did not include a rate increase. Wholesale power rates remain unchanged and this plays a large part in determining your local rates.


Wholesale costs account for 70% of our overall expenses and are a critical component of stable retail rates for families and businesses as our local economy recovers.


U.S. Average Electric Rates.Locally, we continue working to manage the remaining 30% of our operating costs to distribute energy to you. We know that slow-growing family wages and business revenues face rising costs on many fronts. We want to make certain you receive great value from every penny you spend for electricity.


On the horizon: We do anticipate a wholesale cost increase next year, but expect it to be modest and remain in single digits. In future years, regulatory and environmental uncertainties loom large and will affect our supplier's long-range financial forecast.


At an average residential energy rate of 8¢ per kilowatt-hour (kWh), our rates are among the lowest in Missouri and throughout the entire country (see chart on left). We give a lot of credit to our cooperative-owned power suppliers for their roles in affording us these rates.


However, we must also give credit to our employees, who strive for maximum efficiencies in our day-to-day operations as they work to serve you.


We are grateful to be able to share this good news with you, and wish each of you a very Happy New Year!