2020 Rate Increase

Information for Tipmont REMC members

Tipmont REMC is a member-owned cooperative and we strive every day to manage 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, 2020.

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 $0.01034 to $0.01054 effective January 22, 2020.

The Rate 1 service charge for Rate 1 members will increase from $32.50 to $34.50 effective January 22, 2020.

For the average residence using 1,200 kWh each month, the total increase equates to about $4.75 per month.

PREVIOUS EFFECTIVE JAN. 22, 2020
Charge Rate Cost Rate Cost
kWh charges: 1,200 $0.1034 $124.08 $0.1054 $126.48
Power cost adjustment $0.000835 $1.00 $0.000835 $1.00
Service charge ... $32.50 ... $34.50
Indiana Sales Tax 7% $11.17 7% $11.34
Total Bill ... $170.75 ... $173.12

RATE 1 - TIME OF USE (TOU)

The energy charge for Rate 1 Time of Use (TOU) members will increase effective January 22, 2020.

The service charge for Rate 1 Time of Use (TOU) members will increase from $32.50 to $34.50 effective January 22, 2020.

  Prior to Jan. 22, 2020 Effective Jan. 22, 2020
On Peak kWhs $0.2253 per kWh $0.2296 per kWh
Off Peak kWhs $0.0733 per kWh $0.0747 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 $0.1034 per kWh to $0.1054 per kWh effective January 22, 2020.

The Rate 3 service charge is increasing from $75 to $80 effective January 22, 2020.

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 energy charge for Rate 3 Time of Use (TOU) members will increase effective January 22, 2020.

  Prior to Jan. 22, 2020 After Jan. 22, 2020
Off Peak kWhs $0.0733 per kWh $0.0747 per kWh
On Peak kWhs $0.2253 per kWh $0.2296 per kWh

Chart of residential time of use rates

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RATE 4 / TRANSMISSION VOLTAGE SERVICE

The Rate 4 energy charge is increasing from $0.0477 per kWh to $0.0486 per kWh effective January 22, 2020.

The Rate 4 service charge is increasing from $375 to $380 effective January 22, 2020.

The Rate 4 Max kW demand charge is increasing from $1.87 per kW to $1.91 per kW effective January 22, 2020.

The Rate 4 Max on Peak kW demand charge is increasing from $13 per kW to $13.25 per kW effective January 22, 2020.

What is Rate 4?

Rate 4 is available to any member of Tipmont Rural Electric Membership Corporation (REMC) for large power service with a demand of 1,000 kW or more. For service of greater than 12,500 volts. The service location must be adjacent to a substation or transmission line controlled by the REMC and suitable for supplying the required service.

RATE 7 / LOW LOAD FACTOR

The Rate 7 energy charge is increasing from $0.1034 per kWh to $0.1054 per kWh effective January 22, 2020.

The Rate 7 service charge is increasing from $75 to $80 effective January 22, 2020.

The Rate 7 demand charge is increasing from $4.80 per kW to $4.89 per kW effective January 22, 2020.

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 7 / LOW LOAD FACTOR TIME OF USE (TOU)

The service charge for Rate 7 Time of Use (TOU) members will increase from $75 to $80 effective January 22, 2020.

The energy charge for Rate 7 Time of Use (TOU) members will increase effective January 22, 2020.

  Prior to Jan. 22, 2020 After Jan. 22, 2020
Off Peak kWhs $0.0515 per kWh $0.0525 per kWh
On Peak kWhs $0.0622 per kWh $0.0634 per kWh

The Max kW billing demand will increase from $3.75 to $3.82 effective January 22, 2020.

The Max on peak kW billing demand will increase from $13.60 to $13.86 effective January 22, 2020.

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

The Rate 8 energy charge is increasing from $0.0569 per kWh to $0.0580 per kWh effective January 22, 2020.

The Rate 8 service charge is increasing from $105 to $110 effective January 22, 2020.

The Rate 8 demand charge is increasing from $14.58/kW to $14.86/kW effective January 22, 2020.

What is Rate 8?

Rate 8 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 is 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 TIME OF USE (TOU)

The service charge for Rate 8 Time of Use (TOU) members will increase from $105 to $110 effective January 22, 2020.

The energy charge for Rate 8 Time of Use (TOU) members will increase effective January 22, 2020.

  Prior to Jan. 22, 2020 After Jan. 22, 2020
Off Peak kWhs $0.054671 per kWh $0.0557 per kWh
On Peak kWhs $0.064671 per kWh $0.0659 per kWh

The Max kW billing demand will increase from $4.30 to $4.38 effective January 22, 2020.

The Max on peak kW billing demand will increase from $13.53 to $13.79 effective January 22, 2020.

RATE 9 / LARGE SERVICE 1,000 kW+

The Rate 9 energy charge is increasing from $0.0529 per kWh to $0.0539 per kWh effective January 22, 2020.

The Rate 9 service charge is increasing from $250 to $255 effective January 22, 2020.

The Rate 9 demand charge is increasing from $17.90/kW to $18.24/kW effective January 22, 2020.

What is Rate 9?

Rate 9 is available to any member of Tipmont Rural Electric Membership Corporation (REMC) for large power service with a demand of 1,000 kW or more and is located adjacent to a substation, transmission line 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 9 / LARGE SERVICE 1,000 kW+ (TOU)

The service charge for Rate 9 Time of Use (TOU) members will increase from $250 to $255 effective January 22, 2020.

The energy charge for Rate 9 Time of Use (TOU) members will increase effective January 22, 2020.

  Prior to Jan. 22, 2020 After Jan. 22, 2020
Off Peak kWhs $0.0508 per kWh $0.0518 per kWh
On Peak kWhs $0.0614 per kWh $0.0626 per kWh

The Max kW billing demand will increase from $6.50 to $6.62 effective January 22, 2020.

The Max on peak kW billing demand will increase from $13.43 to $13.69 effective January 22, 2020.

RATE SG / SEWAGE GRINDER SINGLE PHASE

The Rate SG energy charge is increasing from $0.1034 per kWh to $0.1054 per kWh effective January 22, 2020.

What is Rate SG?

Rate SG is available to any member of Tipmont Rural Electric Membership Corporation (REMC) for use in a sewage system providing power to sewage grinders with a motor size equal to or less than one horsepower and for which no other specific rate is applicable.

SCHOOLS (SCHEDULE S)

The Rate S energy charge is increasing from $0.0561 per kWh to $0.0572 per kWh effective January 22, 2020.

The Rate S service charge is increasing from $100 to $105 effective January 22, 2020.

The Rate S demand charge will increase from $10.44 to $10.64 effective January 22, 2020.

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.

Why is Tipmont increasing its rates?
There are two primary reasons. The first is the increased cost of providing energy to you. Tipmont purchases the energy we distrubute to you from Wabash Valley Power Alliance (WVPA). In late 2019, WVPA increased the rates of the energy we purchase from them to provide to you. We’re in the process of evaluating our contract with WVPA and exploring wholesale power market alternatives. The second is growth. Since 2012, we’ve added an average of about 700 new members each year. That’s a lot of poles, transformers, wires and other equipment to connect and maintain these services.
Is this rate increase because of Tipmont's fiber internet initiatve?
No. This rate increase is due to the increased cost of providing and maintaining safe and reliable electric service to your home. The electric and fiber internet finances are completely separate so we can manage the health of both.
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 ($0.1054 per kWh effective January 22, 2020). 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. Effective January 22, 2020, the service charge will increase from $32.50 to 34.50.
  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?
From 2012 to this current rate increase, the total cost of energy services for the average residential member has increased by just 1.02% per year while the average annual rate of inflation over the same period is 1.77%. In other words, Tipmont’s rate increases in recent years are significantly less than the general increase in prices.
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.
  • Your neighbor 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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