Board Approves Line Extension, Residential Demand Rate Changes

Midwest Energy’s Board of Directors took two actions affecting members during a public meeting held at the Cooperative’s headquarters in Hays on Jan. 20, 2014.

The first action was to the terms and conditions relating to new residential electric line extensions.  In a unanimous vote, the Board voted to cap Midwest Energy’s contribution to $3,000 per meter.  Previously, Midwest Energy used a line-length formula, where the co-op provided the first 1/8 mile and last 1/8 mile of line, regardless of cost.  The actual language of the changes can be read here.

“This change allows Midwest Energy to provide a generous contribution to encourage new residential development, while affording our members protection and bringing us in line with other cooperatives who’ve moved away from line length contribution formulas,” said Pat Parke, Vice President, Customer Service.

In the same meeting, the Board modified the residential demand rate.  This optional rate has three components: monthly customer charge, energy charge per kilowatt-hour (kWh) and demand charge per kilowatt (kW).  The energy charge was reduced by 1.6 cents per kWh.  The monthly customer charge remains at $22.00 and the demand charge is unchanged at $6.40 per kW of demand.  Customers wanting more information about the optional residential demand rate should contact Mike Billinger at 800-222-3121.

Customers may petition the Kansas Corporation Commission about the change to the residential demand rate by following the process outlined in K.S.A. 66-104d (g) (1).