NHEC Sets Co-op Power and Transmission Rates for Upcoming Winter

PLYMOUTH, NH – New Hampshire Electric Cooperative (NHEC) rates for the upcoming winter period will increase 9.5% over current summer rates, but are down 1.7% from last winter’s rate.

The rate changes take effect with bills rendered on or after November 1 and are the result of adjustments to two portions of members’ bills: the Co-op Power Charge and the Regional Access Charge. The Co-op Power Charge reflects the cost NHEC pays to purchase electricity for its members from the wholesale market. The cost of this power is directly passed through to members who do not purchase electricity from a competitive supplier. The Regional Access Charge includes the transmission costs NHEC pays to deliver electricity to its distribution system. As with the Co-op Power Charge, the costs NHEC incurs from transmission companies are passed directly through to members.

For a residential member using 500 kilowatt-hours (kWh) of electricity per month, the winter rate changes will result in an overall bill increase of $9.43 (9.5%) per month when compared to summer rates.  However, the new winter rate is a decrease of $1.93 (1.7%) per month when compared to rates in effect last November. NHEC’s Delivery Charge rate and Member Service Charge portions of members’ bills are not changing, in line with NHEC’s stated goal of not increasing distribution charges in 2020. These two charges pay for NHEC’s operations and investments in the Co-op’s distribution system.

The increase in the Co-op Power Charge is primarily due to an annual pattern of higher energy costs in winter months in New England. During the winter, the demand for natural gas as a heating fuel increases. Since natural gas is used to generate much of the electricity in New England, the increased demand for natural gas to heat homes and businesses causes the price of electricity to increase. The increase in the Regional Access Charge is primarily due to continued investment and maintenance of high voltage electrical lines by the transmission companies that own them. The Regional Access Charge also includes a credit from revenue associated with the Regional Greenhouse Gas Initiative.

NHEC’s winter rates are in effect from November 1 to May 1. A complete list of NHEC rates and fees is available HERE

NHEC Holding Rates Steady for Summer Period

PLYMOUTH, NH – New Hampshire Electric Cooperative (NHEC) has announced that it will hold its Co-op Power rate steady at the current level for the summer period (May 2020 – November 2020).

The Co-op Power rate reflects the cost NHEC pays to purchase electricity from the regional market on behalf of its members. The price NHEC pays for this power is directly passed along to its members who do not buy their electricity from a competitive supplier. Market prices have been low, so NHEC members will continue to benefit from lower regional electricity costs. The current Co-op Power rate is 18% lower than last year’s summer period.

“With all the uncertainty and economic upheaval caused by the COVID-19 pandemic, we are pleased to be able to continue to provide low rates for our members,” said NHEC President/CEO Steve Camerino.

For members who purchase their power from NHEC, the Co-op Power rate will remain at 6.6¢ per kilowatt-hour (kWh). The total billing rate for the summer period is 14¢ per kWh. For the typical residential member using 500 kWh per month, the total monthly bill is $99.47. By comparison, last summer’s total monthly bill for a 500 kWh residential member was $104.55.

NHEC’s complete schedule of rates and fees is available here.