CEO’s Message – October 2024

In Sync & on the Right Track

At Wiregrass Electric Cooperative (WEC), we’re focused on running smoothly and efficiently, making sure that your electricity is safe, reliable, and as affordable as possible. Thanks to great leadership at the board level, committed senior staff, and dedicated employees, we’re taking care of business every day. But there’s 1 thing we must always watch closely — the dominant role energy demand plays in power costs.

Peak demand, which refers to the time frame when members’ electrical usage is at its highest, drives the price WEC and other utilities must pay for power. Even if we only hit that peak once a year, we must secure enough power to cover those high-demand moments. Those few hours of peak demand have a lasting impact, influencing a large part of your bill.

In the winter of 2022, we experienced the highest peak demand in WEC’s history. But last winter, thanks to careful planning, communication, and your participation, we saw a lower peak. In fact, we estimate that our members helped shave off about 6 megawatts from our peak demand, resulting in nearly $700,000 in wholesale power cost savings. This just shows just how important your role is when it comes to managing demand and lowering costs for everyone.

To keep managing these costs, we’ve made some changes. We’ve simplified your bill by moving the fixed demand charge into the distribution expense. The cost remains the same, but now it’s shown on a single line. But the biggest change is how we’ll calculate coincidental peak demand going forward. In an effort to have the fairest rate possible and help control costs, we’ll begin charging $2.50 per kilowatt (kW) for demand during peak periods. This applies to our coincidental peak, day, which always occurs in the winter during the 6 a.m. through 9 a.m. window. Our goal is to send a pricing signal to help you manage your usage during these high-demand times when our co-op’s power expenses are the highest. If you can reduce your usage during those peak hours, starting Nov. 1 and continuing through February 28, it is possible you could lower overall costs.

We aren’t having any capacity issues, but power costs are climbing due to national policies and regulations. Nationally, power plants are being pushed to transition away from reliable and affordable sources like coal and natural gas, which means utilities are paying more to generate electricity. When you combine that with the increasing demand from industries like data centers, which require massive amounts of power, the result is higher capacity costs.

What can we do? At WEC, we’re focused on giving you more control over your costs. By adjusting how we charge for demand and offering tools to help you manage your usage, we’re working to keep rates as low and as fair as possible. We’ll soon reduce our kilowatt-hour energy rate from $0.1113 per kWh to $0.0996 per kWh— a 10.5% reduction — to reflect our commitment to affordability.

We’re going to continue researching and finding ways to help you save money while ensuring that you have reliable power. We’ve embraced technology to keep our operations efficient, and we’re constantly seeking out new ways to reduce costs without sacrificing service.

As we move forward, we invite you to tune in to our annual meeting on Friday, October 18, at noon for more information on how we’re adapting to these changing circumstances and keeping your rates competitive. Our board and leadership team will provide more detailed updates on the steps we’re taking to stay ahead of rising costs and evolving regulations.

We’re proud of what we’ve accomplished, and we’re optimistic about the future. Even with rising costs and regulatory hurdles, Wiregrass Electric is committed to being a reliable, affordable, and trustworthy provider for all of our members. Thanks to your support, and the hard work of our dedicated team, we’re on the right track.

So remember, reducing your demand, especially during peak times, isn’t just about saving money, though it will. It’s also about helping us continue to provide the excellent service you expect and deserve.

As always, thank you for being a valued member of Wiregrass Electric Cooperative.