What Has Changed?
Beginning with the billing statement you receive in March, 2020:
- The Customer Charge will increase from $21 to $23 per month.
- The Energy Charge across all rate classes will decrease by 3.45% overall. This will offset the increase applied to the Customer Charge.
- The Production Cost Adjustment (PCA) will be continued in 2020 through February 2021. The credit applied to each bill amounts to $0.00229 per kWh. Again, the more you use, the more savings you will experience.
In summary, a slight increase has occurred to the Customer Charge, overall decrease to the energy charge, and the PCA continues for 2020. The result of rate adjustments throughout the past four years have resulted in an overall downward trend in final bill totals.
2020 Budget Establishes Our Course
Affordable rates are made possible with careful planning in our annual Budget and Work Plan.
Southern’s Board of Directors reviewed the Budget in November of 2019, which set the stage in December for the approval of rates for 2020.
Overall, operating and maintenance expenses for 2020 are expected to increase by 1.81 percent, from $11.37 million in 2019 to $11.57 in 2020. These expenses account for costs related to transmission, distribution, customer accounts, customer service and administrative expenses. The Capital Budget will total $17.02 million for the upcoming year, a decrease from 2019 projections of $18.05 million.
The capital budget allocates expenses for facilities such as substations, poles, conductor, meters, vehicles and equipment. This year, the Capital Budget also includes costs for the final stages of construction for our Funk Service Center.