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FOR FURTHER INFORMATION: Contact Steve Shoot

Farmers’ Electric Cooperative received an eight percent hike in its power bill from its power supplier, effective April 1, 2006, the cooperative is not going to raise its residential rates to its member/owners this year. “This was an expected rate hike to us,” stated FEC CEO Mike Sanders. “Associated Electric Cooperative has done a good job of keeping us informed as to the rate changes coming in the future, so this wasn’t a surprise.”

Associated Electric (AECI) had announced in April of 2004 they would be passing along rate hikes every other year to the electric cooperatives in their system beginning in 2006. The rate hikes are the result of AECI spending over $1.3 billion on environmental controls at their Thomas Hill and New Madrid power plants, as well as the $1.2 billion to be spent on a new power plant, which will be located just west of Norborne. The new plant is expected to open in late 2012 or early 2013. “We will probably be looking at a rate hike sometime in 2007, but we’re not going to pass along this rate hike to our residential members,” Sanders said.

The last rate increase by FEC was October 1, 2004. Prior to the 2004 increase the last rate hike to FEC members was January 1, 1991. The cooperative also had a rate decrease April 1, 1995.
Based on the power bill FEC received in 2005, the expected cost of power will increase $700,000 to $800,000 in 2006.

Sanders cited several reasons why the cooperative would be able to hold the line in 2006. He said the cooperative’s economic development efforts, its load management program and the continued growth in the overall water heater base load on the cooperative’s distribution system would delay any rate hike at this time. “Plus, we will be adjusting our departmental budgets to defray any possible rate increases for as long as it is fiscally responsible,” Sanders emphasized.

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