PPEC says no electric rate hike in 2016

Paulding-Putnam Electric information

PAULDING — Paulding Putnam Electric Cooperative (PPEC) announced there will be no general rate increase in 2016.  In fact, the 2016 operating expenses are projected to be slightly less than the year-end 2015 projected operating expenses.

Every year, the PPEC accounting staff prepares a detailed budget for the cooperative. In reviewing all costs, we ask ourselves a simple question: Is this necessary, and if it is, can it be done more efficiently? “Efficiency isn’t about turning the wrenches faster, or typing faster at a keyboard. It’s about reviewing our processes and being sure that each step is necessary and adding value to the job,” stated George Carter, CEO and general manager of PPEC.

The management team and all employees are charged with ensuring that efficiency savings are part of the budget process. Cost management always starts with efficiency. A big part of the budget is a review of our electric rates, which starts with an update of the cost-of-service study, or the COSS, by our accounting department each year. The COSS breaks down all the investment necessary to serve each rate class, identifies all the costs associated with each rate class, and compares it to the revenue being generated by the rates for each class. With the study completed, the board of trustees can review the financial performance of each rate class.

And after a careful review of the proposed budget and the COSS, the board determined that no rate increase was necessary for 2016.

“Your board of trustees, management and employees work hard to deliver electric power that is reliable, safe and cost-competitive with our neighboring utilities. Be assured that we are working for you to keep your rates competitive, while still working to replace aging facilities, increase efficiency and improve our service reliability,” added Carter.