Effective October 1, 2023, an average rate increase of 4.7% over all rate classes was approved by the Board of Directors.
The increase is part of a 10-year rate strategy that is intended to ensure that rates are tied more closely to the cost of providing electricity.
The utility industry has been hit hard by inflation and material shortages. The cost of essential items like wire, meters, and transformers have increased by 200-800% and lead times have gone from months to a year or more. As a result, nationwide electrical rates were up an average of over 14% last year.
Salem Electric is different. As your electric cooperative, we keep an eye on the bottom line and we’re careful of how our business decisions impact rates. Our last rate adjustment was October 2021, making our 4.7% increase an average of 2.35% a year, way below the rate of inflation.
The basic charge for residential service will increase from $25 to $30 and the kWh rate will decrease slightly from $0.0760 to $0.0754. The average member will see less than a $5 increase in their monthly electric bill.
A detailed rate schedule is available on the documents page under Rates and Schedule of Charges.
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