Rate increase needed in 2024 to maintain value of service and cover rising cost pressures

Did you know that eighty cents of every dollar paid by members of Citizens Electric goes to Wabash Valley Power Alliance (WVPA), Citizens’ wholesale power provider? WVPA’s rates are currently based on a model where their cost to provide service to its members is disconnected from what a member actually pays for service. The result is that some WVPA member cooperatives, like Citizens Electric, pay more than the costs it takes to serve them while other WVPA members pay less. Simply put, Citizens’ members are paying costs for electricity being used by other WVPA members in other states. Citizens Electric is the largest of 23 cooperatives that own WVPA and the only WVPA member-owner in Missouri.

Over the past several years, Citizens Electric has attempted to resolve this issue through WVPA’s internal governance processes while advocating fairness for our Missouri members. Citizens Electric was disappointed when these efforts ultimately failed, so Citizens is challenging WVPA’s wholesale power rates at the Federal Energy Regulatory Commission (FERC). The FERC has regulatory oversight of wholesale power utilities like WVPA and has the responsibility to approve Wabash Valley’s rates. The FERC can also require Wabash to change their rates which we have asked the FERC to do. We believe Wabash Valley Power’s rates are inconsistent with FERC’s rules and precedent. This means the FERC may require Wabash to change its rates to reflect actual costs for each of its cooperative members.

Until Citizens receives a ruling from the FERC, Citizens’ board of directors was reluctantly compelled to raise retail rates for the second consecutive year. The increase in members’ rates will be effective April 1 and will reflect on members’ May billing statements. The average residential member who consumes about 1,000 kilowatt-hours per month will pay an approximate additional $4.10 per month, excluding taxes. This rate increase will help offset Wabash Valley’s increasing costs and will enable CEC to maintain the reliable delivery of power that our members expect. The service availability charge remains the same at $29 which was set in May 2015. This monthly charge is the same for all residential members regardless of usage as it includes the fixed charges of our providing safe, reliable power to all our members.

Citizens Electric employees, management, and board of directors are committed to serving over 27,000 members and ask for your patience and understanding as we fight for fairness at the Federal level.