Other Billing Information
Here's what you're paying for.
We also offer special provisions for delayed payments and special considerations for our elderly, sick and disadvantaged members. Please contact us to make arrangements.
If you have any questions or problems with your bill, please feel free to contact us and we will accommodate you in any way we can.
The "Basic Service" Charge
Woodruff Electric Cooperative's basic charge represents your fixed monthly costs consisting of poles, wire, transformers, meters, right-of-way maintenance, property taxes, and other expenses associated with service to a location. These costs occur regardless of the amount of energy purchased or sold. The Public Service Commission (PSC) generally requires that such "customer-related" costs be identified and billed separately from the "energy-related" and "capacity-costs".
Previously, "customer related" costs were averaged in the kWh charge. During the 1970s energy shortage, utility companies were asked to restructure their consumer rates resulting in a change from "minimum bill" to "basic charge".
Without the fixed charge, the kWh rate would be higher for all energy, and those using more kWh per month would be subsidizing those using less.
Basic charges among utilities may vary since there are different ideas on how to allocate fixed costs, but each has a basic or fixed charge.