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2019 Rate Increase

Information for Tipmont REMC members

Tipmont REMC is a not-for-profit, member-owned cooperative and we strive every day to hold down costs while continuing to provide the reliable service you expect.

A rate increase approved by the Tipmont REMC board of directors will go into effect beginning with bills mailed on January 22, 2019.

How does the rate change affect me?

Below are the rate changes for each rate class. The majority of Tipmont's members are Rate 1 / Single Phase. If you're not sure which rate class your account is in, it is listed on the back side of your bill. For additional rate class information, please refer to Board Policy 214: Rate Class Assignment and Metering of Demand . Rate Class Assignment and Metering of Demand

RATE 1 / SINGLE PHASE (RESIDENTIAL)

The Rate 1 energy charge for Rate 1 members will increase from $0.01026 to $0.01034 effective January 22, 2019.

For the average residence, this equates to about $1 per month.

PREVIOUS EFFECTIVE JAN. 22, 2019
Charge Rate Cost Rate Cost
kWh charges: 1,200 $0.1026 $123.12 $0.1034 $124.08
Power cost adjustment $0.001170 $1.40 $0.001170 $1.40
Service charge ... $32.50 ... $32.50
Indiana Sales Tax 7% $10.84 7% $10.84
Total Bill ... $168.01 ... $169.04

RATE 1 - TIME OF USE (TOU)

The Rate 1 kWh charge for Rate 1 Time of Use (TOU) members will increase effective January 22, 2019.

  Prior to Jan. 22, 2019 Effective Jan. 22, 2019
Off Peak kWhs $0.0720 per kWh $0.0733 per kWh
On Peak kWhs $0.2240 per kWh $0.2253 per kWh

Chart of residential time of use rates

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RATE 3 / MULTI PHASE SERVICE

The Rate 3 energy charge is increasing from $0.1026 per kWh to $0.1034 per kWh effective January 22, 2019.

What is Rate 3?

Schedule 3 Multi-Phase service is available to any member of Tipmont Rural Electric Membership Corporation (REMC) for general use with a maximum monthly demand of 50 kW or less and for which no other specific rate is applicable.

RATE 3 / MULTI PHASE SERVICE TIME OF USE (TOU)

The Rate 3 kWh charge for Rate 3 Time of Use (TOU) members will increase effective January 22, 2019.

  Prior to Jan. 22, 2019 After Jan. 22, 2019
Off Peak kWhs $0.0720 per kWh $0.0733 per kWh
On Peak kWhs $0.2240 per kWh $0.2253 per kWh

Chart of residential time of use rates

Learn More

RATE 7 / LOW LOAD FACTOR

The Rate 7 demand charge is increasing from $4.50 per kW to $4.80 per kW effective January 22, 2019.

What is Rate 7?

Rate 7 is available to any member of Tipmont Rural Electric Membership Corporation (REMC) for general power service with a monthly demand of 50 kW or more and a 12 month average load factor 20% or below. The service must be located adjacent to an electric transmission or distribution line of the REMC that is adequate and suitable for supplying required service. This schedule is not available for supplemental or standby service.

RATE 8 / LARGE SERVICE (50kW - 1,000kW)

The Rate 8 demand charge is increasing from $14.03/kW to $14.58/kW effective January 22, 2019.

SCHOOLS (SCHEDULE S)

The schools demand charge will increase from $10.00 to $10.44 effective January 22, 2019.

SERVICE FEES

The following fees will increase effective January 22, 2019:

  • Late Payment Fee will increase from 4% to 5%
  • Reconnect Fee will increase from $55 to $75
  • Trip Fee will increase from $25 to $75
  • Temporary Service Fee will increase from $100 to $200

For a full list of service fees, please download the rate tarriff

Frequently asked questions

Following are questions and answers members commonly ask in regard to rates and their bills. If you have additional questions about your electric bill, please call Member Service at (800) 726-3953 during normal business hours, 8 a.m. - 4:30 p.m. You may also send us an email.

How is my bill calculated?
There are four components to your electric bill:
  1. Energy charge: The total kilowatts hour usage multipled by the energy rate ($0.1034 per kWh effective January 22, 2019). Essentially, this is paying for the energy that you use.
  2. Service Charge: A fixed amount on your bill each month that is required to deliver electricity and operate the system that serves you. Each member pays the same per rate class. The service charge is currently $32.50
  3. Power cost adjustment: an adjustment made to your electric bill to reflect fluctuations in the true cost of power purchased from Tipmont’s provider, Wabash Valley Power.
  4. Indiana sales tax (7%)
What can I do to reduce my bill?
There are many ways to reduce your energy use and your bill. Visit tipmont.org/saveenergy to learn about energy rebates and In-Home Energy Assessments.
Is Tipmont a good value for my investment?
Over a five-year period from 2013 to 2018, the total energy services cost for the average residential member has increased by less than 1 percent per year while the cumulative rate of inflation over the same period is more than 7 percent. In other words, Tipmont’s rate increases over the last five years are significantly less than the general increase in prices.
Is this rate increase because of Tipmont’s fiber internet project?
No. This rate increase is solely due to the increased cost of providing safe and reliable electric service to your home. In fact, the electric and broadband finances are completely separate so we can manage the health of both.
When did you last increase your rates?
There are two parts of your electric bill: the energy charge and the service charge. The January 2019 increase only affects the energy charge. We last increased the energy charge in June 2016. The service charge was last increased in June 2017.
What is the service charge?
The service charge is a fixed amount on your bill each month that is required to deliver electricity and operate the system that serves you. Each member pays the same per rate class. The service charge is separate from the energy charge, which is the cost for how much energy you use.
What does the service charge cover?
The service charge helps Tipmont REMC:
  • Provide the equipment and labor needed to deliver electricity to your home, including poles, wires, substations and transformers;
  • Invest in new equipment and systems to keep up with the growing demand for reliable electricity;
  • Provide the local staff that serves you.
If I live in Fountain County, am I paying for the growth in Tippecanoe County?
As a cooperative, Tipmont spreads its costs evenly among our membership. It's a trade-off both ways. Rural members pay to help support growth throughout our territory. Members in more dense areas like Tippecanoe County pay more than they normally would to help cover the cost of providing service to low density areas like Fountain County.
Why are my neighbor’s bills lower?
The majority of your bill is determined by how much energy you use. We all use electricity differently:
  • Your neighbor's home may be insulated differently.
  • You may choose to keep your heat at a higher temperature during the winter.
  • You may have more energy efficient appliances.
Why do Tipmont members pay higher rates than Duke customers?
The difference is because of population density. Tipmont’s costs (poles, wires, labor) are the same, but our revenue is much lower.
  • Tipmont serves about 8.5 consumers per mile of line, which equals about $22,000 per mile of line in revenue.
  • Municipals and investor-owned utilities serve anywhere from 34 to 48 consumers per mile of line, which provides $75,000 to $113,000 per mile of line.

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Power Cost Adjustment

The Power Cost Adjustment (PCA) is calculated each month and allows Tipmont's monthly rates to stay consistent rather than changing every time the generation cost of energy fluctuates.

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  • 403 S. Main St. MAP
  • Linden, IN 47955
  • (800) 726-3953
  • (765) 339-3243
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  • 8 a.m. - 4:30 p.m.
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