Rate Adjustment

October 01, 2021
Article

Throughout the past year the Board Rate Committee has worked with a consulting firm to determine revenue requirements, conduct a cost of service analysis, and develop a rate design. The study utilized historical financial and system data, preliminary 2022 budget figures, and the Bonneville Power Administration’s rate adjustment for transmission costs.

Effective October 1, 2021 Salem Electric's rates will increase an average of 5% over all classes. The adjustment is part of a rate strategy that provides sufficient revenue for Salem Electric’s operating and capital needs while factoring in the equitable allocation of costs to all rate classes. 

Residential Service Rate: The basic charge will increase from $20 to $25 and the kWh rate will change slightly from $0.0755 to $0.0760. The average member will see a $5.45 increase in their monthly electric bill. 

General Service Rate Structure: The existing two classes of general service, demand and non-demand, will change to three classes based on kW: Small (0-50kW), Medium (51-500kW), and Large (greater than 500kW). This replaces the shared tiered structure for the energy charge with each class having distinct blended kWh rates, and establishes a distinct demand charge for each class of general service. It also reduces the demand allowance from 50kW to 25kW for all classes.

 

Rate Comparisons
Residential Service Small General Service Class Medium General Service Class Large General Service Class
Basic Charge $25 $40 $47 $49
kWh Charge $0.0760 $0.0746 $0.0617 $0.0532
Demand Charge $0 $4 $8 $10