Items on your monthly billing statements:
BILLING DATES
The current month's bill reflects the previous month's electric Usage (kWh) and Demand (kW).
Example: July billing statement = June Usage and Demand.
POWER SUPPLIER ENERGY CHARGE
This charge is the wholesale power cost which covers the cost of generating and transmitting power from the power plant to MJM substations. MJM does not generate its own electricity. Instead, we purchase it wholesale from a generation and transmission cooperative in Indianapolis. Like other electric companies, MJM bases its power supplier energy charge on kilowatt hours (kWh). One kilowatt hour is equal to 1,000-watt hours. A watt hour is the amount of energy used by a one-watt load drawing power for one hour. For example, a 100-watt light bulb uses 100 watts (0.1kWh) of power in one hour.
POWER SUPPLIER DEMAND
This charge is for the highest amount of electrical capacity consumed at any one time during a billing period, and is measured in kilowatts (kW), not kilowatt hours (kWh). See Understanding Demand for more details.
DISTRIBUTION ENERGY CHARGE
This charge recovers a portion of the cost to get the power from the substation to the meter and is based on kilowatt hours (kWh).
SERVICE DELIVERY CHARGE
The Service Delivery Charge is a monthly charge that helps cover the fixed costs associated with providing electricity to your location. It helps pay for the costs of operating and maintaining the distribution lines, transformers, substations, and meters that deliver electricity to your home or business. It also helps pay administrative costs for billing, records, and other expenses. Your service delivery charge remains the same each month and is based on your power needs/rate classification.
POWER COST ADJUSTMENT (PCA)
This is a line item on the bill that adjusts regularly to help the co-op recuperate fluctuating purchased power costs.
TAXES & ADDITIONAL SERVICES
The remaining charges on your bill are taxes and any additional services you may have with MJM, such as an outdoor security light.
OPERATION ROUND UP® - optional program
The mission of the Operation Round Up® Program is to assist in strengthening the communities served by MJM Electric. Through this innovative program, the “small change” is earmarked for community betterment groups and other programs in need of financial assistance. This is an optional program so if it may not appear on your billing statement.
MJM is a distribution cooperative. It constructs and maintains the power lines and substations necessary to deliver power to their rural members but does not generate that power. MJM purchases its power wholesale from Wabash Valley Power Alliance (WVPA) in Indianapolis, Indiana. WVPA is a cooperative organization that has an alliance with more than 20 member distribution co-ops. WVPA makes and transmits the electricity from the power plants to MJM for distribution to our Members.
Anyone who pays a $5 membership fee, pays a meter deposit and receives electrical service from MJM Electric is a member of the cooperative. Each member owns a little piece of the cooperative. Since MJM is a not-for-profit company, members don’t make money off its services but do have a say in how the cooperative operates.
All members are invited to attend the cooperative’s annual meeting. The state of the cooperative will be discussed at this meeting, and members can directly affect the operation of the cooperative by voting for directors on a one-member-one-vote basis.
No, MJM is a distribution cooperative. It constructs and maintains the power lines and substations necessary to deliver power to their rural members but does not generate that power. MJM purchases its power wholesale from Wabash Valley Power Alliance in Indianapolis, Ind. Wabash Valley is a generation and transmission cooperative and transmits electricity to 21 cooperatives like MJM across Illinois and Indiana.
SERVICE DELIVERY CHARGE
“Why is my monthly infrastructure charge higher than my friend who lives in town?”
If you use electricity from a company like a Rural Electric Cooperative, you might notice your monthly flat fee (service charge) is higher than someone who lives in town. This is because the type of electric company you have makes a big difference in how much you pay.
“What Is a Rural Electric Cooperative?”
Rural Electric Cooperatives, like MJM Electric, are not-for-profit companies owned by their members. They were created to bring electricity to people living in the country, where other companies didn’t want to go. Everyone who gets electricity from the co-op is a member, and they help make decisions about how the company runs.
One big challenge for these co-ops is that rural areas have fewer homes and businesses spread out over a much larger space. This means the co-op has to build and take care of a lot more power lines and equipment to reach everyone. There are fewer people to share these costs, so each person pays a bigger part of the bill.
How Are Town Electric Companies Different?
Electric companies in towns and cities are usually owned by investors or the local government. These places have a lot more people living close together, so the company doesn’t need as many power lines and equipment to serve everyone. Because they have more customers, the costs are divided among more people, making each person’s bill smaller.
Why Do Co-ops Charge More?
Even though Rural Electric Cooperatives charge more each month, they work hard to keep prices fair. Members help decide what the charges should be, and any extra money goes back into improving the electric system and Capital Credits. Co-ops want to make sure everyone gets reliable electricity, even if it costs more to reach homes that are far apart.
Working Toward Better Service
All electric companies, including co-ops and city utilities, are trying to keep up with changes like using more renewable energy and updating their equipment. For co-ops, these changes may mean even more investment, which can affect monthly charges for a while.
While Rural Electric Cooperatives may have higher monthly fees, they are important because they make sure people in rural areas have electricity. They focus on helping their community and making sure no one is left without power. As things change in the energy world, co-ops will keep working to find better ways to provide affordable electricity to everyone.
(Article by: Union County Electric Cooperative, SD)