BEDFORD COUNTY, Va. (WDBJ) – A local utility company is changing how it bills customers for their electricity use. While some haven’t noticed much difference in the cost of electricity, other customers say their bills have tripled with the new structure.
Southside Electric Cooperative (SEC) has increased its charges for electricity by nearly 3,000%. This rate is revenue neutral and does not benefit the company, but instead the money is invested in energy service equipment, the SEC said.
Customers who use less energy, such as families with solar panels, will be charged more under the new structure, on top of their existing solar bills.
Dan Audette lives in Bedford County and has had a solar system for five years. His monthly bills with the SEC have always been less than $30, but Audette and his wife noticed a startling spike in their bill last month.
“(It was) a complete shock, it was $77,” Audette said. “For five years, it was always the same. Now it’s $77.”
In February, the Saudi Electricity Company implemented a new demand rate structure. Customers are charged based on their highest peak electricity usage throughout the day, rather than their overall total usage.
“Let’s say that when the solar system turns off at night, because the sun is going down, and we turn on the dishwasher, and maybe the hot water heater starts, and we turn on the stove, you’ll have a peak, a peak,” Audette said. “They’ll charge you for it.”
The price rose from $0.10 per kilowatt hour to $3.00 per kilowatt hour.
It’s an increase of 2900%.
This caused Odette’s electricity bill to rise 177% from $28.58 to $79.16 in just one month.
“What we feel is that solar producers are being targeted by this new structure,” Audet said.
“Most members will not see an increase or any change in their monthly bills. Some may see a decrease,” Southside Electric Cooperative posted on its website. “There are a small number of members, an estimated 600 of about 48,000, who are placing a heavy order on the system, despite While they may not be using as much electricity, they will see an increase in their bills.
The company did not make anyone available for an on-camera interview, instead sending a statement to Target 7:
“As a not-for-profit electric cooperative, the SEC allocates costs close to how they are incurred to ensure they are fair and equitable within each rate tier. With the help of today’s technology, the SEC is able to allocate costs accordingly, instilling confidence in the fairness of our billing system.” The Saudi Electricity Company appoints an external contractor to provide a service cost study and recommendations on fair prices.
“We were assuming that when we had solar, our bills would go down, not go up,” Audette said. “I overproduced, put power back into the system, and (the company) found a way to charge me more.”
Audette said he reached out to the company, local representatives and the Virginia Attorney General’s Office to see what, if anything, could be done.
“Any other service, like cable or phone, you can cancel, and you can go with someone else. I can’t do that with electricity,” Audette said. “We were stuck. What are we supposed to do, except shine a light on it?”
Electricity companies typically pay solar producers at the end of each month to return more electricity to the grid system for other customers to use. However, Audet explained that the SEC reduced his payments for overproduction of energy from $800 to $80 per month.
The company did not provide anyone to answer our questions, including why this change was made in the first place.
A list of resources showing how customers can reduce their order can be found here.
Below is the full statement the SEC sent to Target 7:
“The SEC implemented a new rate structure in January 2024, which is reflected in the February 2024 billings. While the recent adjustments to kilowatt-hour and kilowatt-hour (demand) billings may seem complex, rest assured, they are designed to be revenue neutral for the cooperative, Ensuring fairness for all of our members. As a not-for-profit electric cooperative, SEC allocates costs closely to how they are incurred to ensure they are fair and equitable within each rate category and with the help of today’s technology, SEC is able to allocate costs accordingly, instilling confidence in fairness Our Billing System SEC hires an outside contractor to provide a cost-of-service study and fair rate recommendations The studies projected that 600 members’ bills would increase by $20 or more with the rate reset and others would save $20 or more, with no additional revenue received before Securities and Exchange Commission. On average, the electricity bill for solar energy that generates more than it consumes saw an increase from $26.71 to $56.22. The Saudi Electricity Company is building infrastructure to provide electricity to members when needed. The system is designed to meet the highest levels of electricity demand, just like a road system. The four- or five-lane highway is full of cars at 6 a.m. and 6 p.m. At 3 a.m., traffic on the highway is limited. Building the SEC’s infrastructure is much the same. Regardless of the hour in which energy is consumed, SEC must build a readily available system to supply that energy. The SEC’s last base rate increase was in 2020. The SEC provides educational materials and guidance to help members control their demand on the system. Keep in mind that members are only charged for energy consumed in the form of kilowatt-hours or kilowatts (demand). We encourage members to contact their local electric cooperative with any questions and to learn about ways to save on their electricity bills. “We are here for our members.”
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(Tags for translation) Southern Electric Cooperative
