WREC Rate Hike Approved At 4.7 Percent

Hernando Today

BROOKSVILLE - Withlacoochee River Electric Cooperative customers will see a 4.7 percent rate increase starting Jan. 1.

The state's utilities commission has approved the rate increase requested by the nonprofit cooperative, known as WREC.

The hike adds about $5.30 to the cost of 1,000 kilowatt hours, a little less than what the average WREC customer uses each month. That much power will now cost about $118.30.

The increase is on the low end of the range WREC officials predicted earlier this year. The cooperative first vowed to keep the increase to single digits, then narrowed that further by promising a hike of no more than 7.25 percent.

There is no good time for a rate increase of any size, David Lambert, WREC's manager of member relations, acknowledged Friday.

Still, keeping the increase to 4.7 percent is "the absolute best we were able to do," Lambert said.

"We have really done some extreme cost-cutting measures around here," he said.

The cooperative, one of 10 electric cooperatives that own Seminole Electric, a wholesale power supplier, has slashed its contract staff and reduced its regular workforce by 16 through attrition. WREC has about 80 fewer people on staff than it did a year ago, Lambert said.

The cost of fuel to produce electricity is decreasing. Coal prices have dropped after spiking earlier this year. Natural gas also costs less now than it did six months ago.

But CSX Transportation plans to nearly double the fees it charges to move coal by rail to Seminole's Palatka power plant. That will negate much of the savings the cooperative has enjoyed by streamlining its operation and cutting contract employees, Lambert said.

Seminole has filed a formal complaint against CSX with the federal Surface Transportation Board, contending the increases are unreasonably high.

WREC also has invested millions of dollars in new infrastructure to serve developments that are far behind schedule and few paying customers, Lambert said.

This latest rate hike increase comes after an increase of 11 percent earlier this year.

There is some news customers might find encouraging.

WREC has refunded about $14 million this year, or roughly the same as last year, to its more than 71,000 customers in Hernando County through so-called capital credits, Lambert said.

The company gives back profit to its "members" through credits on a December bill. The credits are divided up based on the amount of energy used and the duration of membership.

The cooperative returned $108,000 in credits to Hernando County government this year and $109,000 to the school district, Lambert said.

WREC serves more than 200,000 customers in six counties.

How much will WREC bill increase?

Withlacoochee River Electric Cooperative customers will see a rate hike of 4.7 percent, effective Jan. 1. At that percentage, the cost for 1,000 kilowatt hours - a little less than what the average WREC customer uses each month - would rise from about $113 to about $118.30.