Greetings, member-owners of Roanoke Cooperative,
I hope this edition of The Power Pulse finds you well and informed about our ongoing efforts at Roanoke Cooperative and Fybe, your broadband subsidiary. As mentioned in our previous communication, I want to provide you with a comprehensive update on our cooperative's future direction, particularly regarding an upcoming rate adjustment.
Due to rising costs in wholesale power delivery, operational maintenance, and equipment since our last adjustment and investments to deploy broadband at a more accelerated pace, we started passing through some costs via a Wholesale Power Cost Adjustment. As we navigate the landscape of the energy and broadband sectors and fulfill our commitment to bring universal broadband access to our member-owners before the end of 2025, we’re rolling these increased costs into a formal rate adjustment that will take effect on May 1, 2024.
The increase will affect the basic facilities charges for all rate classes to align recovery of fixed costs associated with maintaining the electric distribution system. The residential basic facilities charge will be $45 per month. Additionally, there will be a 12% increase on all kWh charges that were published in the October 1, 2018, rate schedule, the cooperative’s last rate adjustment. Finally, the cooperative will manage other needs to recover costs through its Wholesale Power and TIER Adjustment (WPTA) Rider. This rider will support our investments, particularly in fiber deployments, to meet our goal of providing broadband connectivity to all member-owners. The May WPTA will be $.02 per kWh, and we will monitor this monthly to ensure we meet the obligations of funders supporting our broadband deployments. As the broadband business generates more revenue from access to more member-owners and its additional subscribers, we should experience the WPTA reducing over time.
Our commitment to delivering universal broadband began in 2016, and we are proud to report significant progress since early 2023—making service available to 75% of our member-owner locations at the end of the year. This strategic broadband expansion is integral to supporting future electric rate stability and offering affordable internet services specifically to our member-owners after our network established for our member-owners is complete.
As we build out a network available to our member-owners, we have been asked often about our strategy to build networks in nearby towns. We have taken this approach as it generates more income very quickly due to the higher number of services available for investments. This directly benefits our member-owners, who are the sole owners of Fybe. These expansions not only ensure the financial health of our cooperative, but also enhance our ability to provide reliable services and support discounted internet options through Fybe, our wholly owned broadband subsidiary, in the future.
While we know rate hikes are necessary, we acknowledge the impacts. We are asking member-owners to inquire about the following initiatives:
1. Upgrade 2 $ave Program: Subscribers of this program are able to generate savings from investments in energy efficient measures that are recovered through the electric bill over time. We also have additional benefits for homes that need of urgent repairs addressed in order to enroll the home in the program.
2. Solar Expansions: If you're considering residential solar installations, please get in touch with us for information and assistance. We are engaging with many of the federal programs through the Bipartisan Infrastructure Law (BIL) to support member-owners with clean energy innovations.
3. Partnerships with Social Services and Community Assistance Agencies: We collaborate with help agencies to support income-qualified member-owners, particularly when usage escalates during the summer and winter months. There are currently some member-owners benefiting from $30 per month in solar credits on their electric bill due to active collaboration with weatherization assistance programs at community action agencies.
4. Time of Day Rate Program: Subscribers of this program have experienced significant savings due to making informed choices regarding the times they consume electricity.
5. Real-Time Usage Management: Stay informed and in control by signing up for high-usage alerts.
6. Fybe Broadband Services: Fybe is wholly owned by the member-owners of Roanoke Cooperative. With this service, member-owners can access the fastest fiber optic technology, with additional benefits such as free thermostat and water heater control installations and cost savings by cutting the cord. Subscribing to this service not only generates personal benefits but amplifies the value of your cooperative membership.
By exploring these options and making informed choices, we can collectively mitigate the impact now and stand up the broadband business that will generate benefits for all member-owners for many years to come.
In closing, I want to express my gratitude for your continued support and understanding as we navigate these challenges together. We remain committed to delivering reliable and essential services while ensuring the financial well-being of your cooperative.
Thank you for being an integral part of the Roanoke Cooperative family.
Best Regards,
Marshall Cherry
President and CEO