In this month’s The GVEC Review on page 19, you will find an official notice of upcoming GVEC rate changes to take effect beginning with November bills (you can read a blog version of this rate change notification here). I would like to further explain these changes and the positive overall impact most members will experience.
GVEC Rate Changes Will Decrease Average Residential Electricity Bills
All residential electric bills are split into two basic components: Distribution, including Delivery and Service Availability charges, and Generation and Transmission (G&T). This is the same for our commercial and industrial members. For the first time since March 2016, the Distribution rate on four of GVEC’s account types—G-1, G-2, G-3, SL—will be increased. This adjustment follows an extensive analysis of GVEC’s costs and forecasted financial position. That analysis included comprehensive Cost of Service and Rate studies by an independent third-party organization.
It’s important to note that although we decided to increase Distribution rates, this wasn’t our only adjustment. Being a not-for-profit Cooperative operating on your behalf gave the Board of Directors great flexibility for offsetting distribution increases. This is why we made the decision to lower the G&T rate on the bill, the component that makes up approximately 70% of your bill. By realigning both rates at the same time, the majority of member-owners will receive lower average electric bills each month.
This positive end result is an excellent example of our Board of Directors at work representing your best interests. With these GVEC rate changes implemented, the average monthly bill for a residential home will go down from $151.15 to $149.23, which remains comparable and competitive with surrounding area providers.
Designing, building, and operating a state-of-the-art transmission and distribution system is an expensive responsibility driven by a high level of quality. We measure quality for our members directly by how often your lights blink, how often you experience an outage, how quickly we are able to respond when there is an outage, and by providing the facilities and support services necessary to serve your needs. The Board of Directors and staff work diligently to maintain a balance between covering the cost of quality service and keeping rates stable and affordable.
We’re happy to answer any questions you may have regarding this rate change and realignment. Just call us at 800.223.4832, Monday-Friday, 7:30 a.m. to 6 p.m., and speak to one of our customer service representatives. They will provide you any additional details you might request and answer all your questions.
I am always interested in your comments and feedback. Contact me by phone at 830.857.1152, by email at dschauer@gvec.org or by mail at P.O. Box 118, Gonzales, Texas 78629.
