New Hampshire Electric Cooperative (NHEC) is increasing its Co-op Power Charge from 9.62 cents per kilowatt-hour (kWh) to 16.98 cents per kWh. The new rate will take effect with bills rendered on or after August 1.
The Co-op Power Charge includes the cost that NHEC pays to purchase electricity on behalf of its members from the wholesale electricity market. The cost of these electric market purchases is directly passed through to members who have not chosen to purchase power from a competitive supplier. NHEC does not add any additional charges or fees to its Co-op Power Charge, and the Co-op Power Charge does not fund NHEC’s operations.
In New England, natural gas is the predominant fuel used to generate electricity. The price of natural gas is nearly three times higher than this time last year. Natural gas prices are impacted by global supply and demand, which has led to historically high electricity prices in New England and across the country.
The new Co-op Power Charge and Regional Access Charge will result in a $37.55 a month increase for the typical residential member using 500 kWh per month, or 32% total bill increase. Members using 1,000 kWh per month will see a total bill increase of $75.09 per month, or 37%.
“The price of the electricity NHEC purchases for our members who opt to take Co-op Power energy service has continued to climb,” said Brian Callnan, NHEC’s VP of Power Resources and Access. “An adjustment to the Co-op Power Charge will help stabilize our members’ electricity costs through the upcoming fall and winter.”
“From the supermarket to the gas station to the electric meter, costs are up across the board,” said Jim Bakas, NHEC’s Interim General Manager. “We know that any rate increase is difficult for our members, many of whom are on fixed incomes or already struggling to pay their bills.
“We want our members to know that we are here to help and there are Co-op, state, and local assistance programs available. We encourage members to call us at (800) 698-2007, or visit NHEC.com/financial-assistance. Our Member Solutions representatives are ready to create payment plans or budget billing that works for you.
“Our Energy Solutions department is also ready to help with efficiency programs that offer incentives, rebates, and advice for getting the most from your energy dollars.”
Co-op Power Rate Adjustment Schedule
NHEC has traditionally adjusted the Co-op Power and Regional Access Charges in May to reflect power and transmission costs for the upcoming summer period, and again in November for the winter period ahead.
To mitigate seasonal price fluctuations and provide NHEC members with more stable rates, NHEC is changing the time of year it sets these charges to August and February of each year. Setting the Co-op Power Charge in August and February will align NHEC with other New Hampshire utilities and avoid the large swings in electricity prices that have occurred over the past several years.
About NHEC
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.