After an unprecedent year like 2020, we are excited to inform our membership that we do not anticipate any changes in your electric rates in 2021.
As you may remember, Iowa Lakes Electric Cooperative adjusted its base rates Jan. 1, 2018, resulting in a slight 0.39 percent increase. The new rates were based on a cost of service study designed to equitably collect revenues from members based upon their service characteristics and cost drivers.
As in the past, when your Cooperative receives additional charges or credits in wholesale power costs, these increases or decreases are correspondingly passed through to our member-owners in the form of a Power Cost Adjustment (PCA).
In 2020, the price your Cooperative paid for its energy (kilowatt-hours) purchases from our wholesale power suppliers decreased by $0.00109. This savings was directly passed through to our member-owners resulting in a credit being applied to all kilowatt-hours used during each month in 2020.
The good news to report is that the 2021 rates we have received from our wholesale power supplier did not change from the 2020 rates, so the PCA credits you enjoyed last year will continue in 2021.
While your Cooperative is able to maintain your rates right now, there is no guarantee rates will not have to be changed in the future. The energy markets are constantly fluctuating and changes in the weather, natural gas supplies and government regulations could all result in rate changes down the road.
Your Cooperative's board and employee team continue to work diligently to help hold the line on rate increases.
EFFECTIVE RETAIL RATE
On an annual basis, your Cooperative has been returning margin rebates, patronage dividends distributed on a LIFO basis and a load management rebate for those member-owners who participate in our load management program. These credits have reduced the actual retail rate you pay for your energy usage. In the example below, the annual cost per kilowatt-hour was reduced by more than one cent.