Starting in January, members will now see a facility charge as a separate line item on their electric bill. This is not a new or additional fee. Previously, the facility charge was combined with the energy charge as one line item. By separating the facility charge, we hope to provide a clearer picture of how your bill is calculated. As your local electric cooperative, we want to help you understand each part of your bill.
What Is a Facility Charge?
As a not-for-profit cooperative, our rates are designed to reflect the sources of our expenses. We have three main types of costs.
- Fixed Costs: Ongoing expenses like infrastructure maintenance.
- Energy Costs: What we pay for the electricity we provide.
- Demand Costs: The energy needed when system-wide energy use is at its highest.
At Piedmont Electric, we are continuously working on ways to control all three of these types of expenses. The facility charge covers a portion of our fixed costs, which are the expenses incurred to upkeep the infrastructure in place so it is ready to deliver electricity to you, regardless of how much you use. By separating the facility charge, we can better illustrate how each part of your bill contributes to keeping the reliable operation of our electric system.
Why Is the Facility Charge Necessary?
Some people wonder why there’s a charge even when their usage is low. The facility charge helps cover the basic costs of maintaining and operating the electric system that brings power to your home or business. These costs are necessary to make sure you have however much electricity you need, whenever you need it, whether you use just a little or a lot.
Other Common Facility Charges
Another familiar facility charge can be found on your cell phone bill. With most services, you pay a fixed monthly fee just to keep your line active, this is similar to a facility charge. Then, you have a variable cost component based on how much you use your phone, such as charges for extra data or texts. Finally, there can be a demand component if you exceed a certain usage threshold, which might result in overage fees or higher rates during peak times. These three main cost drivers are similar to the costs faced by electric cooperatives which we will discuss in more detail in future newsletters.
Keeping Costs Fair for All
By collecting a facility charge from all members, we make sure that everyone pays their fair share of the costs needed to maintain and operate the electric system. This helps keep the overall cost of electricity stable and fair, without putting too much burden on any one group of members.
We’re Here to Help
If you have questions about any part of your bill, including the facility charge, please reach out to our Member Services team. We’re committed to transparency and keeping our members informed— because as a cooperative, we’re owned by you! Thank you for being a valued member of our electric cooperative.