It’s always interesting when someone tells you “I have good news and I have bad news.” Personally, I always ask for the bad news first and work up from there.
But I’ll improve on that. For you, I have good news and then just some other news. No bad news to report right now!
The good news is that Midwest’s rates are staying the same for 2022! Our rates are largely driven by our cost to purchase the electricity that we provide to our members. And the amount of power that we must purchase is largely driven by the weather, as our irrigation load in the summer is a major contributor to our power purchases for the year. In a wetter year (like 2019), about 67% of our expenses for the year is purchased power. In drier years (like 2020 and 2021), that number goes up to about 72%. Tri-State (Midwest’s power supplier) has kept their rates basically flat for the past seven years and Midwest has done the same. Midwest’s rates will remain the same as they have been since 2016!
As far as the “other” news goes, Midwest will be renumbering all our rates starting with next month’s billing. We have added several different types of rates over the past few years and have simply run out of space in our previous numbering system. As members add wind and solar generation to their services, it is necessary to have Net Metering and Net Billing rates to properly account for the power that they sell back to Midwest. The Electric Heat rate that Midwest added a few years ago provides members with the opportunity to receive a discounted rate on their heating costs. And as electric vehicles become more common in our area, there will likely be a need for a separate rate to account for the different type of load introduced from charging those vehicles.
So don’t be alarmed if you notice new rate numbers on your bills going forward. All the actual rates are remaining the same. Only the identifying number are changing.
Have a safe and happy new year!
*Midwest Electric is an equal opportunity provider and employer.*