New Hampshire Electric Cooperative’s (NHEC) Board of Directors has approved changes to the Co-op Power rate and Regional Access Charge which will result in an overall bill decrease for most residential members of about 4%, or $5.06 per month. The new rates will take effect with bills rendered on or after Sunday, May 1.
The Co-op Power portion of members’ bills will decrease from the current winter rate of 9.8 cents per kilowatt-hour (kWh) to 9.6 cents per kWh for the summer. The Co-op Power Charge includes the cost that NHEC pays to purchase electricity from the wholesale electricity market. The cost of this power is directly passed through to members who have not chosen to purchase electricity from a competitive supplier. The Co-op Power Charge does not fund NHEC’s operations. Last May, NHEC set its summer rate at 6.5 cents per kWh.
The May 1 rate changes will also include a 23% decrease in the Regional Access Charge portion of members’ bills. The Regional Access Charge includes the costs NHEC pays transmission companies to deliver electricity to its distribution system. The rate also includes the state-required refund of Regional Greenhouse Gas Initiative (RGGI) proceeds. As with the Co-op Power Charge, the costs NHEC incurs from transmission companies are passed directly through to members.
“The Co-op Power Charge reduction for the summer period is not as low as we’ve seen in years past,” said Brian Callnan, NHEC’s Vice President of Power Resources and Access. “The primary driver is natural gas prices remaining high throughout the summer, which is the fuel used to generate nearly half of the electricity in New England.
“The United States exports an increasing amount of natural gas. As a global commodity, natural gas prices are impacted by international events and markets. As with other fuels, high natural gas prices are leading to higher electricity costs this summer.”
For more information about NHEC rates, charges, and fees, visit NHEC.com/rates-tariffs. NHEC is a nonprofit electric cooperative that is owned by the members it serves. NHEC provides electricity and energy solutions to 85,000 homes and businesses in 118 communities across New Hampshire, including Andover.