This rate adjustment is necessary.
A not-for-profit organization operates without the goal of generating profits for its owners or members. As a cooperative, we must pass along these costs to our members, just as we distribute savings and excess revenues as capital credits. We work diligently to keep electricity as affordable as possible, as we do not want to pay higher rates any more than you do.
No profit motive.
As a cooperative, we adjust rates only to cover actual expenses, not to generate a profit.
Rising costs are influenced by several key factors:
1. Inflation: Prices for essential materials, such as transformers, wire, and poles, have increased by 55% to 121%, as reported in the October 2024 issue of South Carolina Living.
2. Wholesale Power: Wholesale power costs have risen, particularly due to the end of a court-agreed rate freeze with Santee Cooper that concluded on December 31, 2025. Significant rate increases were noted in January and March 2025, as discussed in a South Carolina Living article. Our estimated whole power increased by $3.8 million.
We did not make this rate adjustment lightly. The board spent months reviewing options before approving this decision, which none of them wanted to make.
Raising rates is a last resort. Before 2009, the last increase occurred in 1997, and following that, the rate decreased in 2016. The facility charge has increased, and the wholesale power cost adjustment will continue to fluctuate.
What is the Facility Charge? (Also known as Service Availability. Name change effective June 2025)
The facility charge is a monthly fee that covers the costs associated with providing infrastructure, such as lines, poles, substations, and right of away, regardless of actual electricity usage.
Employees and trustees are directly affected:
Community Commitment: Most of our employees are also members, so we understand the impact of these changes and are committed to keeping costs fair.
New rates, effective June 2025:
Residential Facilities Charge – $1.10/day (was $28 monthly; increasing to $33 monthly based on 30-day billing period)
Residential Solar Facilities Charge – $1.17/day ( was $30 monthly; increasing to $35 monthly based on 30-day billing period)
Residential Energy Charge – $0.1575/kWH (was $0.1165; increasing by $0.041 or 4.1¢)
Why are the rates for cooperatives higher than those of other utilities like Duke Energy and CPW?
One reason for the higher rates is that cooperatives do not generate their own electricity. Because we are distribution utility only, we must purchase electricity from suppliers such as Duke, Dominion, and Santee Cooper. IOUs typically have an average of 25 to 30 meters per mile, while municipalities have up to 50 meters per mile. In contrast, Little River Electric has only 7 meters per mile. Unfortunately, this disparity in meter density continues to this day in our rural communities, making not-for-profit cooperatives as important as ever. The main reason cooperatives were established; investor-owned utilities (IOUs) were unwilling to serve our area in the 1940s due to the high costs associated with delivering electricity to our members. Unfortunately, they still do not want to serve our rural communities today.
