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Shared Power Deficiency Notice

  • Posted: 01.11.2019
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Member-Owners Operating Seasonal Loads
This month you may notice an additional "SHARED POWER" charge or credit on your monthly billing statement from Iowa Lakes Electric Cooperative. This charge, if there is any, is your annual deficiency payment for 2018. The Shared Power program is designed for member-owners with larger than normal electric usage during only one or two months of the year (seasonal loads). The charged for shared power is calculated at 20 percent of your transformer's potential rated output as if it were fully loaded throughout the year.

To assure a fair recovery of the cost of providing service to these seasonal load facilities, a minimum number of kilowatt hours (kWhs) must be used during the year. If an electric account falls short of the requirement, a Shared Power charge will be applied at year end for the deficient kWhs. In 2018, the difference between the annual minimum and the actual usage is multiplied by 2 cents per kWh instead of the average 12-12 cents.

Shared Power Rate Adjustment for 2018 Usage
In 2017, your Cooperative conducted a cost of service study that determines how much it costs to serve different classes of member-owners, such as farm/residential, commercial or industrial. From the study, a rate design is developed to determine the rate necessary to generate the revenue needed to provide electrical service to each class that they are paying as close as possible to what it costs to serve them and that no one group of members is unfairly subsidizing another.

The 2017 cost of service study noted that the Shared Power kWh deficiency charge of 1 cent has not changed since Iowa Lakes Electric Cooperative began offering the Shared Power program over 32 years ago. It was recommended to the board of directors that the deficiency charge be increased from 1 cent to 2 cents, which your board of directors did approve. Therefore, the difference between the annual minimum and the actual usage will be multiplied by 2 cents per kWh for your usage in 2018 and this additional charge will be on this month's (January) billing statement.

Please note, your Cooperative has available two methods of payment: Lump sum or a predetermined monthly average prepayment which is then used to reduce your total potential annual deficiency balance. Please call Iowa Lakes at 800-225-4532 if you would like to enroll in the monthly option for next year.


An on-site farm analysis by your local energy advisor is also available upon request. If you have any questions or have significantly changed your electric usage by removing your seasonal electric fans or motors, please call Iowa Lakes at 800-225-4532 for a free review of your account.