Rate Change FAQs

Q: What is HCE’s main reason for the rate change? 
A: Our power suppliers, Western Area Power Administration and Basin Electric Cooperative, are raising the cost of power to the cooperative and these increases will continue for the foreseeable time.   

The last electric rate change was made in 2016. Since the last rate change, the cost to operate the cooperative has increased. For example, energy costs from Generation & Transmission (G&T’s) have increased and are projected to increase approximately 7% next year.  Although the cooperative has done an excellent job of controlling our costs over the last eight years, time and inflation have caught up. 

Inflation, as we all have seen, has affected the cooperative as well.  Anywhere from between 20% and 160% our costs have gone up.  The supply chain issues have also created issues that have caused us to have more inventory on hand than usual because of the delays that we have experienced.  Some of our material can take up to years to receive. 

Q: When was the last rate change? 
A: Hill County Electric works diligently to control costs, and we have kept our rates stable for the last eight years. However, the most recent cost-of-service study indicated the need to update our rate structure to ensure that the cooperative continues to be a healthy organization. 
 
Q: Who determines when a rate change is necessary and by how much? 
A: The Cooperative’s Board of Directors continuously monitors the financial stability of the organization to determine if or when a rate increase is necessary. To establish the new rate structure, an independent, experienced third-party firm reviewed and recommended changes to our rates. 
 
Q: What is the effective date of the new rates and when will I see this reflected on my bill? 
A: The new rates will be effective September 1st, 2024, and will be reflected on your bill thereafter. 
 
Q: Do members have a voice to express their opinions about the rate changes? How will members continue to have a voice in future rate revisions? 
A: The Cooperative’s Board of Directors are elected by members to represent their interests and those of the cooperative. The board works to see that HCE operates conservatively and is efficient in its operations and management, making decisions after considering the best interests of all cooperative members. The board thoroughly reviewed all aspects of the proposals. Members may contact board members at any time via electronic means or phone call to express their concerns. You can go to the HCE website at https://www.hcelectric.com/contact-our-leadership/view/form and pick your board member, fill out the information and they will receive your message. 
 
Q: Traditionally capital credits are returned to members; can HCE keep that money instead of increasing rates? 
A: Hill Country Electric is a not-for-profit electric cooperative. Our not-for-profit status and our bylaws mandate that any positive net income made by the cooperative must be allocated to the membership in capital credits. Annually, the board strives to retire a portion of these amounts. 
 
Q: Does HCE anticipate another rate change next year or in the next five years? 
A: The board cannot predict what will happen in the future.   
 
Q: What is HCE doing to keep costs down? 
A: HCE does everything we can to keep costs down. Rates have not increased since 2016. We strive to operate efficiently while adhering to our commitment of providing affordable, high quality and reliable electric service.  

We continuously evaluate our operations to keep rates as low as possible by: 
▪ Managing our capital projects and cost to ensure reliability of the grid. 
▪ Implementing beneficial technology, such as our outage management system and distribution inspection software, to help control costs, provide operational efficiencies and increase reliability. 
▪ Competitively bidding material to ensure the best possible price; and 
▪ Ongoing evaluation of our day-to-day operations for opportunities to improve and gain proficiencies. 
 
Q: What can I do to manage and reduce my electric costs, and can HCE provide any assistance in this area? 
A: Hill County Electric offers several ways to help members manage their electric bills. These services include using power more efficiently as well as budget billing.  HCE also has an energy assistance program.  Contact the office to learn more about the program. 
 
Q: What is the Monthly Recurring charge on my bill? 
A: The monthly recurring charge covers expenses associated with having a service available at your home or business, including but not limited to, billing, capital projects, repairs, meter testing and maintenance. The charge ensures that expectations for continuous power and outstanding member services are met. It gives each member a fair and equal share of the cooperative’s operations. It provides funds that must be invested back into the cooperative to maintain the quality, reliability, and integrity of service that our members have traditionally counted on and come to expect. 
 
Q: Are the rate increases equal across the board?  
A: All rate classes of service are receiving the same level of increase, except for our industrial customer.  They have a contractual rate that manages their rate structure.  As HCE receives rate increases those increases are automatically passed on to our industrial customer. 
 
Q: What is the delivery charge 
A: The delivery charge covers part of the cooperative’s costs to deliver power to your home or business, including costs to maintain substations, rights-of-way, poles, and distribution lines that deliver electricity to you.  Part of the Monthly Recurring also supports the delivery of power to your home or business. 
 
Q: Why is the energy charge going up? 
A: The energy charge is increasing because the costs to purchase power are increasing.  
 
Q: Will the new rates change the cost of my yard light? 
A: Yes, the rate for Yard lights will be charged $10 per month per yard light.