Rates

The Access Charge is a fixed charge for each account that accounts for the equipment and service necessary to turn on the lights whenever they’re needed or necessary – a flat monthly rate charged whether or not any electricity is consumed.

• It accounts for the co-op’s investment in equipment like meters, poles, wires and transformers, as well as labor to provide members with safe and reliable electric service.

• It supports fleet, facility and customer service functions, such as line maintenance, right-of-way clearing, member service support and administrative responsibilities.

• It is similar to monthly fees that other utilities charge (such as telephone service providers).

• It accounts for the infrastructure that provides members access to electricity seven days a week, 24 hours a day, 365 days a year.

The purchased power adjustment is a direct pass through of changes in the average cost of purchased wholesale power from Minnkota Power Cooperative. (The adjusted cost could either be decreases or increases) This allows the cooperative more flexibility when recouping fluctuations in the wholesale energy costs instead of estimating them into an overall electric rate. 

A cost-of-service study showed we need to better match the cost of peak usage with peak power costs on the grid. Adding a demand charge reflects the way your cooperative pays for wholesale power. A demand charge accounts for higher grid costs during times of peak usage. This change will better align member rates with the cost of wholesale power.

A demand charge also provides opportunities for more consumer control over electric bills by minimizing individual peak use, and – when doing so, it helps BEC lower overall peak demand. Signing up for BEC’s off-peak program is a great place to start.

What exactly is Demand?

Demand is the amount of power needed to run everything in your home at a specific time – measured in kilowatts(kW), not kilowatt-hours. There is no charge for demand at this time (currently listed at $0.00), however BEC pays more for power when members use a lot of electricity at the same time. 

This is the rate you pay for each kilowatt-hour (kWh) used in the billing period. The amount of energy you consume can vary from month to month and can impacted by extreme temperatures.

The kWh charge represents the energy consumed during the statement reading dates and is multiplied by the current energy rate to calculate the charge. The energy rate represents costs associated with wholesale power including energy, transmission, substation and capacity charges. 

• A kilowatt-hour (kWh) is the measurement of electricity used. One kWh is equal to 1,000 watts used continuously for one hour.

  • For example: a 100-watt light bulb burning for 10 hours uses one kWh. The higher the watt rating on electrical devices, the more electricity it uses.

Your cooperative has held rates flat for more than six years. An independent cost-of-service affirmed that it’s time to adjust rates. As a not-for-profit, member-owned co-op, our focus is on service, not profit. We only change rates when necessary to keep our service reliable, pay our loans, and stay financially stable.

Rising Costs: Costs are on the rise. Inflation, higher interest rates, and supply chain issues have increased our equipment and material costs since 2018.

Prices for crucial components like spools of wire, underground cable, transformers, metering equipment, and even basic nuts and bolts have surged over the past few years. Core steel for transformers, heat shrink tubing, copper connectors and computer chips – all critical to the electric system’s reliability — have experienced shortages and price hikes.

Since our last rate increase in 2018, the cost of a pad mount transformer – the green box that delivers energy from the distribution line to your home – has increased 140%. The cost of underground wire has increased by 62.7%, and the cost of a wood pole has increased by 34.4%. These are just a few examples of how equipment has increased over the past few years.

The early shutdown of baseload power plants and the addition of wind and solar energy have also created supply and demand issues on the grid. When electricity demand is high and power supply is limited, Beltrami Electric pays more for power. To better align member rates with these higher costs during peak times, the board is considering adding a demand charge.

As a result of all of the above, the board of directors is considering a rate change for 2025.

We’ve held rates flat for six years through wise investments in reliability and careful management of our costs. Our electric service is 99.98% reliable. That averages about one outage per member per year. Very few outages mean very little overtime pay to restore service when the power goes out. We also include employees in our strategic planning efforts – and their ideas help keep our purchasing costs down. The last rate increase occurred in April 2018.

After holding off on a rate change in 2024 and holding rates steady for six years, the board of directors is expected to make a decision on rates in conjunction with the 2025 budget planning process later this year. Look for additional details and information in the Northern Lights newsletter.

The most important thing you can do is practice the wise use of electricity. We offer many conservation tips on our website here: 

BEC offers several options to help you manage your electric bill. Some of those services include automatic payment options, budget billing, home energy assessments, off-peak programs and rebates.

Our energy experts can help. Call us at 218 444-2540 – for ways to save on your electric bill.