The Facility Charge Explained
Your electric bill has two main charge items: the facility charge and the energy charge. The facility charge is the monthly fee that Adams-Columbia Electric Cooperative members pay to help cover the cost of bringing electricity to your location. It covers expenses the cooperative incurs regardless of how much electricity is used. You could think of the facility charge as an access fee, like your local phone bill, to access the electric grid. The energy charge is the per kWh charge for the actual amount of electricity used each month.
Beginning with the January 2010 rate increase, ACEC’s facility charge will be based on $28.25 per month, but will be billed at a daily rate of 92.88¢ per day. The actual calculation for this daily rate is $28.25 X 12 (months) ÷ 365 (days).
Among the expense items covered by the facility charge are:
- Trucks, wire, transformers, power poles and labor needed to build and maintain the electric distribution system
- Keeping pace with increased system investments to improve both capacity and reliability
- Liability insurance, interest, taxes, and emergency storm restoration
Because all cooperative members benefit from having reliable electric service available when they want it, the facility charge ensures that everyone pays their fair share of the basic costs. ACEC’s facility charge is the same for all residential and seasonal accounts.
Members sometimes ask why ACEC’s facility charge is higher than other places, especially big cities. The answer is because of our low consumer density and because we have relatively few large industrial customers to help carry the financial load. ACEC serves an average of six customers per mile of electric line. Compare that to a typical city where the average density is easily from 30 to more than 40 customers per mile of line. Regardless of customer density, Adams-Columbia has an obligation to meet our members’ needs and expectations for reliable electric service.
The facility charge can be difficult to understand and even harder to appreciate on your monthly billing statement. Please call us if you have questions about your facility charge or any part of your electric bill.
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