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Residential Rate Choices

MoneyMVEC works hard to keep its electric rates competitive. The bottom line is to have rates that are affordable, fair and reasonable. 

The price members pay for electricity is determined by the cooperative’s Board of Directors.

Understanding costs and electricity use are two important factors in managing your energy budget.

What are your rate choices?

1. Residential General Service Rates
  • This is MVEC’s standard electric rate. Most members have this rate and it is labeled as the “Main Meter” on the electric bill.
  • The standard electric rate applies to all single-phase and three-phase members who have a monthly peak demand less than 100 kW.
  • General Service Rates include seasonal rates. Why? There are higher costs on wholesale electricity in the summer months (June – September) because energy demand levels are higher than the winter months (October – May).
2. Residential Energy Wise Rates
  • Members participating in Energy Wise programs receive discounted rates and/or bill credits. Savings range from 10-50% on your electric bill.
  • Various program opportunities are available for electric water heating, cooling and heating products.
  • Members can voluntarily sign up for Energy Wise programs and it is labeled as the “Energy Wise Meter” on the electric bill.
  • To learn more, contact an Energy Specialist or check out various Energy Wise program options.


How electric rates are itemized on your electric bill

There are two cost categories listed on your electric bill:
1) Wholesale Power  – the cost to generate energy you use, and
2) MVEC Delivery – the cost to deliver energy to your location

Wholesale Power Costs = Generation & Transmission
  • The cost to generate and deliver your power to MVEC’s substation is shown on the bill under the “Main Meter.” MVEC purchases this power on your behalf from Basin Electric and Great River Energy (wholesale power providers).
  • Wholesale power costs typically represent 70% of your bill.
  • A Wholesale Power Cost Adjustment (WPCA) is also included on the Main Meter. The WPCA is a monthly rate adjustment allowing MVEC to recover real time changes in wholesale power costs (increases and decreases) without formally adjusting the rates. This is a direct pass through to the member based on Basin Electric and Great Rivery Energy billings. MVEC does not retain any of this revenue.
Wholesale Power (Cost to generate energy you use)
 summer winter
General Service Meter (Main Meter) $0.0770 $0.0700

 

Delivery Costs = MVEC Distribution
  • Once the electricity is transmitted to MVEC’s substation, the cooperative assumes responsibility for delivering the electricity to your location. Costs in this category include poles, meters, line, substations, equipment and administrative costs.
  • Costs associated with the delivery appear in the MVEC Delivery portion on the front of the electric bill under “Main Meter.”
  • Some costs are billed on a fixed monthly basis (Basic Monthly Service Charge – $8.80), while others are billed based upon how much electricity you used during the billing period.
  • The Basic Monthly Service Charge is the same for all members in this rate class. It recovers a portion of the cooperatives fixed costs including expenses related to owning and maintaining meters, member service personnel, processing meter readings, billing and payments.
  • Delivery costs typically represent the remaining 30% of your bill.
MVEC Delivery (Cost to deliver energy to your location)
 summer winter
General Service Meter (Main Meter) – First 2,000 kWh $0.0301 $0.0301
Basic Monthly Service Charge $8.80/month

 

Combined Wholesale Power Costs and Delivery Costs
The cost shown below is adding wholesale power and MVEC delivery costs together. This is the total cost for MVEC’s summer and winter electric rates. This combined cost does not include the monthly WPCA charge/credit from the cooperative’s wholesale power providers. When this occurs, MVEC lessens the impact to members by spreading the WPCA over a three-month period.
Total Monthly Residential Electric Rates
(Includes Wholesale Power & MVEC Delivery)
 summer winter
Total Electric Rate for Main Meter - First 2,000 kWh $0.1071/kWh $0.1001/kWh
Basic Monthly Service Charge $8.80/month

 

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