Due to increasing costs, Twin County Electric Power Association will implement its first rate adjustment in approximately 8 years, effective June 1, 2025. The reasons for the rate adjustment, proactive measures Twin County has implemented to minimize costs, and various ways that you can save energy are discussed below.
The rate adjustment is due to rising costs associated with maintaining our electric infrastructure, rising fuel costs and an increase in Twin County’s wholesale power costs. Twin County, along with 10 other electric cooperatives in Mississippi, is a member of Cooperative Energy, a generation and transmission cooperative. Twin County purchases all of its electricity from Cooperative Energy. Cooperative Energy had announced an increase in its wholesale power rates, which make up approximately 75% of your monthly bill.
As a not-for-profit electric cooperative, we adjust member rates only when the actual cost of delivering reliable power exceeds our operating expenses. Twin County’s Board of Directors and management remain focused on streamlining operations and minimizing expenses when considering any changes to member rates.
As the General Manager of Twin County, I am responsible for implementing cost-saving measures that benefit all our membership. The following cost-saving measures have been implemented by Twin County:
- Automated metering infrastructure to eliminate personnel and transportation costs for reading meters.
- Remote connections and disconnections through automated meters to further reduce personnel and transportation costs.
- Online mapping technology enabling personnel to view our service territory and direct staff to specific areas during trouble or outages.
- Aggressively clearing right-of-way to improve reliability, reduce outage times, and minimize the costs associated with outages.
- Reviewing and updating rates to ensure a proper allocation of the costs of providing service to each rate class.
Twin County is proud to have maintained the same rates since 2017. This accomplishment is particularly noteworthy given the rising operational costs associated with materials, fuel, transportation, personnel, and other goods and services. The chart below illustrates the industry average of rising costs:
To assess these rising costs, Twin County’s Board of Directors recently authorized a Cost-of-Service Study (COSS) conducted by an independent organization. This study evaluated the capacity requirements and expenses associated with providing reliable electricity for each rate classification. Based on the COSS findings and careful consideration, the Board of Directors approved a rate adjustment. On average, a residential home using 1,000 kilowatt-hours per month will see an increase of approximately $12.
The main factors influencing rate adjustments and increases in electric prices include:
- Fuel costs, such as natural gas, coal, or other resources used in power generation.
- Regulations and environmental policies set by federal and state agencies.
- Inflation of the cost of goods and services.
- Supply chain issues and increased costs of critical infrastructure and materials, including transportation costs.
- Weather-related events, such as tornadoes, straight line winds, and extreme temperature fluctuations.
- Increased energy consumption.
Whether you are a homeowner or renter, there are many small actions you can take to make your home more energy-efficient and save kilowatt-hours on your monthly bill, thereby reducing the amount you pay each month.
The following are some tools and tips for saving energy each month:
- Turn your thermostat up 3 to 5 degrees when you are away and gradually lower the thermostat setting when you return home. Avoid turning your thermostat off and on during the day.
- Install a programmable or a smart thermostat.
- Install window coverings to limit heat gain during the day.
- Use a ceiling fan to circulate the air. During the summer months, ceiling fans should be set counterclockwise to create a cooling breeze.
- Change air conditioning filters monthly.
- Cover and seal air leakage, such as caulking window frames or installing foam insulation around pipes.
Rate adjustments are challenging for our members and our organization. Twin County’s employees are available to help you understand your monthly usage and want to ensure that our members recognize the value of their electric service and benefits.
Your membership contributes to the sustained growth and stability of your local electric cooperative, and we appreciate your continued support.
Leslie Holloway
General Manager