In today’s modern, connected world, having a reliable source of safe and affordable electricity is crucial. That’s what Cape Hatteras Electric Cooperative strives to deliver to you all day, every day. We’re proud of our efforts to serve your needs with competitively priced electricity, responsive member services, proactive and necessary investments in the electricity grid, all while maintaining the financial ability to retire member capital credits on a regular basis.

Due to continued pressures on wholesale power cost and inflation of equipment and material prices, it has come time to perform a cost-of-service study. The study provides in-depth analysis of revenues, expenses and future cost projections to determine how much revenue will be needed to meet the financial obligations of the cooperative.

During a cost-of-service study, rates are examined and recommendations for changes are made concerning the base charge, rate structures and the cost per kWh.  Today’s rising costs of material and equipment, coupled with increased energy demand, has many utilities facing similar cost pressures. However, CHEC has some additional financial pressures. Here on Hatteras Island, facilities are subjected to extreme coastal conditions and rapidly deteriorating electric infrastructure requiring increased maintenance and depreciation expense. 

In every cost-of-service study decisions must be made to equitably distribute the revenue requirements over the various rates and their components.  For example, options such as a change in the per kWh rate or the introduction of new rate structures, including additional time-of-use options, could be used to meet future revenue requirements. Objectivity is the key to producing an accurate cost of service study.  For that reason, CHEC has contracted with Booth and Associates to take our financial information and cost projections and present the cooperative with recommendations for our future rates.

Please remember that CHEC is a not-for-profit utility. It is always our goal to provide the highest quality electric service at the least cost possible. Our rates are designed not to make a profit, but simply to cover the costs of providing that power. We will continue to look for cost saving measures to minimize the impact of rate changes to our members and will continue to offer energy efficiency programs that help our members reduce their monthly electricity bill. As your trusted energy advisor, CHEC will continue to support your energy needs with a variety of solutions and resources, like complimentary home energy audits and guidance on the installation of renewable options like residential solar. For more information these programs and resources, visit chec.coop/energysolutions.