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Rural rates set to rise
Published Saturday, July 18, 2009
Residents living in rural Pike County will soon be paying more for power.
South Alabama Electric Cooperative, the utility provider for residents in Banks, Goshen and outside the Troy and Brundidge power areas, has announced residents will see an average 4.7 percent increase on their bills beginning Aug. 1.
On average, residents will be spending about $7.46 extra each month. That’s based on the average power usage of 1,200 kilowatt hours.
Chellie Phillips, spokeswoman for South Alabama Electric Cooperative, said the increase comes after the company has held rates steady for the last 17 years.
The new charge will be a customer charge, going up from 8 to 16 percent.
“It’s the cost of doing business,” Phillips said. “Our supplies and materials have gone up, wireless transformers have gone up 25 percent.
“In order to provide that service people have come to expect, we have to raise our customer charge.”
Phillips said the charge enables residents to have power available at their homes. While the company has not raised rates in 17 years, it has passed on higher fuel charges to its consumers, as they are passed on to the company.
“When fuel charges from PowerSouth (supplier for South Alabama) go up , we have to pass that charge on that way,” Phillips said. “When they go down, we can take it back.”
Phillips said since South Alabama Electric Cooperative is a cooperative company, it does not charge any more for power than the cost of running business.
“Anything over and above what it costs to run the business is returned to our members in the form of capital credits,” Phillips said.
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Comments
Posted by TFan (anonymous) on July 19, 2009 at 7:59 a.m. (Suggest removal)
SAEC could save postage and envelope expenses by consolidating my three power meter billings (one address) into one Statement and bill. When I pay the bills in person at their So US231 office I return the unused envelopes and the gals just throw them in the can. In just one month's billing cycle for my address SAEC could save (2X$0.44)+(2X$0.03)=$0.94!!!
According to the article, there is no profit margin on their sale of electric power, so where is the payback on the free water heaters they provide??
I perceive lots of room for improvement at the local SAEC, suggest Max etal take a close look at the way the Co-op goes about bizness before passing along costs of inefficiency.
Posted by rowdytgr (anonymous) on July 19, 2009 at 8:38 a.m. (Suggest removal)
So the SAEC customers make a concerted effort to reduce their energy consumption by 10 percent by spending their hard earned money on things like attic insulation, energy efficient windows and doors, more efficient heating and cooling systems, etc. Then what happens? The energy providers start crying about how they can no longer make their budgets, and instead of trying to find ways to cut costs and find hidden savings in areas like inventory control, spending discipline, and payroll review, they nullify all the savings gains made by their customers by raising their rates by 10-15 percent. So come on Max, you are a smart guy. Find a way to overcome your shortfall without sticking it to your customers who are already suffering from the down economy.
Posted by sevenhawk (anonymous) on July 20, 2009 at 9:50 a.m. (Suggest removal)
No matter what you call it, a rate increase is a rate increase no matter how you justify it. In the end the customer pays a higher bill. What I find amusing is that about the time minimum wage goes up everybody starts raising rates and prices in advance. It's been a long time since I worked for minimum wage, but I know enough to know, that the paople who do will not see benifit one from their wage increases as they go to someone else in the quise of a rate increase.
Posted by Trojan1974 (anonymous) on July 21, 2009 at 1:13 a.m. (Suggest removal)
I can assure you that if you ever go by the SAEC office and go visit the people in the warehouse you will see that their inventory level is at a minimum. First and foremost, the cooperative has let go right of way crews as a cost cutting means. Mr. TFAN, I know from experience you can get your bills consolidated on one bill because mine have been consolidated but only because all of my accounts were on the same billing cycle. So, Mr. TFAN if all of your accounts are located in the same billing cycle you can get this done tomorrow, all you have to do is call their office. You might consider saving yourself some money by mailing your bills rather than spending you hard earned money on gasoline driving to their office to pay your bills. Yes, the SAEC has passed along fuel charges from the utility company they buy their power from to sell to you but their base charges havenot increased in 17 years as the lady said in the article. Tell me how many businesses do you know that has not increased their cost in that amount of time?? The cost of food, clothing, transportation, recreation, college tuition, lawnmowers, tires, phone bills both cellular and land line, medical treatments, appliances, etc have all had price increases, lots of increases. The SAEC has to buy poles, wire, transformers which the lady said has increased by 25%, material for building lines, vehicles and computers just to mention a few things that have had huge price increases. As far as giving away free water heaters, I am very sure the waterheaters are electric and SAEC is in the business of selling electricity. The more electric water heaters the more sales they have therefore I believe there is a fairly quick payback on the water heaters. Mr. TFAN have you had a free water heater put in your house? As far as the comment about attic insulation, energy efficient windows and doors, that is just a common sense thing. SAEC has never told me that I had to do those things but I know that if I don't then I am wasting my hard earned money not having an energy efficient home. Another thing that people always gripe about is what people are payed. I have never asked anyone there what they are payed but I am very sure that being a cooperative they lag behind most investor owned utilities and other types of businesses. Anyway, I did not mean to rant so much but I have been on the SAEC lines for years and the company is second to none. They are having a 4.7% increase but did you know that Alabama Power Company customers had a 14% increase last fall? 14% The power company announced a month or so ago that it is reducing their rates by some 2% but that is still an overall increase of some 12%. You can always move somewhere where Alabama Power is but as for me I choose to support my cooperative adn I look forward to my capital credit check I get from SAEC every year. You won't get that from another type electic company other than a cooperative. Thank you.
Posted by YEM (anonymous) on July 22, 2009 at 7:17 a.m. (Suggest removal)
You people are complaining about a rate increase after 17 years of not having one? Jeez Louise! I hate to see what you think about the price of milk!!
Posted by REDAY (anonymous) on July 22, 2009 at 9:35 a.m. (Suggest removal)
TROJAN 1974,to be this well informed,you have to be on the SAEC payroll,so please enlighten us poor country idiots just how these costs have been presented to the consumers. I've been living as a customer of SAEC for the past 22years,and I've kept a record of the cost per KWH since the very first billing,and I KNOW how the costs have been passed on. It's been in the form of increased cost per KWH,sometimes as much as twice a year. And since it so convienient to forget,it's not been 17 years,but just 5 years ago we had a very large increase,and the answer I recieved from James was because of US regulations cutting emmisions with the conversion from more to less coal to natural gas. That increase came at a time when the Arabs were doubling the cost of oil,and cutting imports to the USA. Just leave it to good ol' Uncle Sam to slam us all. So I ask YOU TROJAN1974,to please clarify,just for the sake of sunshine laws,what is your real reason for the misinformation? Thanks, REDAY
Posted by YEM (anonymous) on July 22, 2009 at 10:23 a.m. (Suggest removal)
It's still less than Alabama Power. Why argue the price of something you pretty much have to have? You have demand, they have supply. I am beginning to think there isn't anyone happy in Pike County because all of the negativity over the littlest things on this website.
Posted by REDAY (anonymous) on July 23, 2009 at 8:10 a.m. (Suggest removal)
YEM,you have seen the light,but you failed to grasp the concept.And that being,we are at the mercy of a government agency,and have no choice or control of how we are treated. If it is your choice to roll over and take it every time they decide to screw you,then I respect your decission. I chose to voice my opinion, since thats the only right that I or you have left,that won't get us locked away the rest of our lives. Sounds like you belong in Iran since you don't care. REDAY
Posted by YEM (anonymous) on July 23, 2009 at 8:30 a.m. (Suggest removal)
REDAY: Wow. That is certainly NOT the only right that you have left. Sounds like you are unappreciative of the rights you have as an American citizen because you most certainly have rights. I have no idea what you are talking about as far as getting locked away for the rest of your life. Seems like the only thing that gets that done is murder, and even then, they don't lock you away for the rest of your life many times. You talk about your "lack of rights" when in reality, you have MANY rights; then suggest I go to Iran. So, because I appreciate that the CO-OP provides cheaper prices than a major competitor; has continued to provide the electrical service at an acceptable rate; and I note that most people just complain without doing anything about it on this website behind an anonymous name, I should go to Iran? I fail to see your connection. Please explain.
I certainly do care, so I don't know why you said that I don't. I care that I have electricity and that I pay my bill. I would rather have electricity than not. People are complaining about a rate increase when there hasn't been one in 17 years. Inflation most certainly has occurred. Alabama is one of the cheapest states to live in. I don't understand what people expect the CO-OP to do. Absorb the additional expense to provide the service without passing it on? Why would they do that when no other service or product market does that?
Posted by REDAY (anonymous) on July 24, 2009 at 7:42 a.m. (Suggest removal)
YEM.It's quite simple. There is not any competetion because the law won't allow it.So where is your freedom of choice? 17 years? You need to ck your records.And by the way,if you want a quick reference in the future,do as I do and keep every one of your bills for 22 years and you too can see the same pattern that I do.And,by the way,my reference to Iran has todo with the recent fact that they shot ,and locked away their people for protesting a recent election. I also keep up with current events ,as well as past expences.Have a wonderful life,and I hope you never break your ROSE COLORED GLASSES. R.E.DAY
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