Cape Hatteras Electric Cooperative (CHEC) recently concluded a cost-of-service study. This study is conducted periodically to ensure that electricity rates are sufficient to recover the cooperative’s power costs and operating expenses. The cost-of-service study also ensures that rates are allocated equitably between residential and commercial members. CHEC’s rate consultant, along with management, reviewed the results of the study and presented the findings to the cooperative Board of Directors in October.

     With continued pressures on wholesale power cost and inflation of equipment and material prices, the study revealed it necessary to implement an average increase of 6.37% beginning May 1, 2025. The overall average rate increase is 9.79%, however, by instituting a wholesale power cost adjustment (WPCA) credit in the amount of (.005)¢ per kWh, the effective change to member’s bills will be an average of 6.37%. The WPCA is a component of the retail rate that can be adjusted when needed to account for changes in purchased power costs. This WPCA credit will remain in place for 12 months and will be reevaluated prior to May 1, 2026. The WPCA credit will show as a separate line item on a member’s bill.

     Of the 6.37% increase, 3.13% is the result of projected wholesale power cost increases. The remaining 3.24% can be attributed to operations and administrative expenses, as well as the increase in depreciation and interest expense associated with nearly $27 million in capital investments over the next five years.  CHEC has held rates at their current level since 2018.

      In terms of dollar amounts, a residential account that uses 1,000 kWhs, with a current monthly bill of $141.70, will see an increase of $8.50, bringing the bill to $150.20. Included, is a small increase in the basic monthly service charge, which is a component of a member’s bill that covers some of the fixed costs of providing electricity to our members, including cooperative infrastructure necessary for power to reach homes and communities. The residential monthly service charge will increase from $25.00 to $30.00. The commercial monthly service charge will increase from $30.00 to $40.00.

     In addition to the cooperative’s traditional residential and commercial rates, several new voluntary rates will be available to members, including a residential time-of-use rate and residential plus electric vehicle rate. A full list of the new rate schedules is available at www.chec.coop/rates.

     CHEC management and staff will continue to work diligently to manage costs and keep rates stable, ensuring that the cooperative can provide safe, reliable, affordable and sustainable power to its members today and in the future. Thank you in advance for your understanding as cooperative staff and your Board of Directors work to implement policies and rates that are equitable, and in the best interest of all CHEC members.