A series of public hearings are on tap for customers of Sam Houston Electric Cooperative to discuss the company’s planned rate increases.
According to the SHECO release, the proposed changes would as much as double certain categories of charges, mostly for commercial customers. For residential customers, the new charges for both base costs and minimum monthly charges will increase $12.
SHECO, in a press release, states that over the past several years, its “consumer-members have faced an array of challenges: a pandemic, inflation, tornadoes, hurricanes, droughts devastating beloved trees and much more. Despite these challenges and the rising costs of materials, services and labor, the Sam Houston EC Board of Directors has not changed rates since 2018.”
The leadership has worked for the members by keeping prices steady, it states.
Additionally, SHECO states the cost of residential transformers has increased 244 percent since 2021—unless the home is served by an underground transformer, in which case the cost has gone up 325 percent. Wire has increased 195 percent in price, along with all other equipment and materials.
SHECO has increased efficiency by operating with nearly the same staff size while serving an additional 17,000 meters since 2018, and in 2023 and 2024, crews removed 45,000 trees dead from drought before they fell on power lines; by comparison, only 7,000 dead trees are felled in a typical year.
An independent firm evaluated the rate structure and found that the total monthly cost to provide and maintain electric service, before any kilowatt-hours are used, is nearly $45 per meter. The current base charge of $19.75 does not recover costs to provide and maintain service to every meter, the release states.
Consequently, the Board of Directors adopted a resolution Oct. 23, 2024, approving the implementation of a revised rate structure; however, only the base charge will change for residential members. Accounts with zero kilowatt-hour consumption will see a difference of $12 on their monthly bill, which is the most any residential bill will increase as a result of this change.
The rate adjustment will go into effect March 1. Hearings will be held: