Talquin continuously evaluates its cost of service to ensure rates reflect the true cost to serve all of its Members. Effective April 1, 2019, electric rates will be adjusted as shown in the tables below. The primary reason for rate changes at this time is to support operating margins that have been impacted from lower usage (energy efficiency appliances, milder weather, sluggish load growth, etc.) and increased operating costs (right-of-way maintenance costs, interest expense, etc.).
In fact, a significant portion of this rate change is due to interest expense (totaling about $1.5 million annually) associated with expenses from four significant storms that have impacted our system over the last three years (Hermine, January 2017 storm, Irma, and Michael).
Expenses from these storms have totaled approximately $41 million, of which only about $2.2 million has been reimbursed by FEMA. This rate change does not include the recovery of Hurricane Michael restoration expenses not covered by FEMA, as those total costs are still being evaluated.
Also, effective April 1, 2019, Talquin will reduce the Wholesale Power Cost Adjustment from a credit of ($0.0015) to a credit of ($0.0035), resulting in an overall decrease on bills of 2 mills, or $2 per 1,000 kWh.
The overall impact of these changes to Members who use 1,000 kWh per month will be an increase of $2.80 (or 2.19%) in their monthly bill. Additionally, starting on April 1st, Talquin will extend billing due dates from 14 days to 18 days.
At this time, water and wastewater rates will remain unchanged.