SEC approves rate increase
Consumers can expect to see a rate increase in their electric bills in April after the Socorro Electric Cooperative Board of Trustees unanimously approved the measure at a meeting Tuesday night. The action came after the board took the issue into executive session before presenting it in a public forum.
Trustee Charlie Wagner asked why it was necessary to go into executive session to discuss the cost of service study and pointed out that, in accordance with the Open Meetings Act, boards must state why they are doing so.
Co-op Attorney Dennis Francish said there were some “sensitive” issues that needed to be address and that it should be discussed privately.
“When we are out of executive session the results will be presented,” Francish said.
Still not satisfied, Wagner asked Cathy “Catt” Cobb, a rate analyst with SGS Engineering LLC, a consultant for the co-op, and who was going to present the study, if she could explain the reason why it was necessary to discuss the matter behind closed doors. Cobb referenced the OMA Compliance Guide, section 10-15-1 H7, citing the exemption for “meetings subject to the attorney-client privilege pertaining to threatened or pending litigation in which the public body is or may become a participant.”
“You think this could be something that could cause us to be sued or for us to sue?” Wagner asked.
“Yes,” Cobb answered.
David Wade, who was chairing the meeting in the absence of co-op President Paul Bustamante, who arrived late, asked if that satisfied Wagner, who said it did.
What to expect
The cost of service study showed the current and proposed rates. The overall increase averages out to about 7 percent depending on consumption.
The current residential rates will go from $9 to $15 and from 12.15 cents per kilowatt-hour to 12.50 cents per kWh. The average residential monthly usage is 498 kWh.
Small commercial customers can expect to pay a $25 per month system charge instead of their current $11.85 per month charge, and large commercial rates will increase from $35 to $75.
Right now, the current rates being charged are considerably lower than neighboring co-ops in the state, Cobb explained. Sierra Cooperative’s rates are approximately $76.85 and Central New Mexico Electric Co-op’s rates are about $90.91. With this increase the SEC will come closer in line with what other co-ops are charging, she said.
“There hasn’t been an increase (in rates) in 13 or 14 years,” Cobb said.
“Are we still the lowest in the state?” Francish asked.
“Yes, even at $15 we are right there with other co-ops,” Cobb answered.
In a phone interview Thursday, Cobb said the customer charge, based on costs, should be over $40.
“We will gradually build up to that, but that is a long, long way in the future,” Cobb explained. “We’re all getting hit — at the grocery store, the gas stations — everything is going up.
“I think that’s about all people can stand right now,” Cobb also said at the board meeting, regarding the increase in rates.
However, Cobb said that following the rate increase, consumers will see a little bit of a credit on one line item on their bill regarding debt cost adjustment for the first time in a few months because the co-op hasn’t drawn down money for any projects yet.
On Friday, co-op Interim Manger Richard Lopez said the Public Regulation Commission will now review the study to make sure the numbers and needs are legitimate. He said he believes there will be a 30-day comment period to protest the rate increase.
Cobb said there has to be approximately 2 percent of a rate class, or 25 consumers, to file a protest within 20 days after the advice notices are sent out.
Consumers will also be sent a notice regarding the rates in January and Lopez said they will be having community meetings in all five districts as well as meetings for large commercial consumers.
“We would prefer if they talk to us first if they have any concerns,” Lopez said of anyone wanting information on the increase to better understand the study and costs.
Cobb said she will be at all of the district meetings and will be happy to answer any questions consumers have regarding their current bill and how the rate increase will affect it.
“We’ll give them any information they need to help them understand,” Cobb said.
Contact Jackie Schlotfeldt