October 1, 2023

Beginning October 1, 2023, Blue Ridge Mountain EMC will raise its portion of the electric rates by 2.25%. This increase is the first in ten years. Over those ten years we have been able to manage our way through and absorb normal inflation, largely on the strength of growth, but post-COVID inflation rates have been much higher and have proven a different matter. 

The 2.25% increase is well below what we see for household staples like milk and eggs. The increase will be spread evenly across all rate classes, but will be applied in different methods.

• Residential rates will be increased by raising the customer charge $2.90/month from $22.91 to $25.81. The margin on kWh sales will not be increased. This method was chosen for fairness to large and small users (a seldom used vacation property bears the increase equally with a heavily used residence). This method provides predictability both for the member and the cooperative.
• GSA1 - Commercial and Industrial accounts (those with maximum demands below 50 kW) will be increased by raising the customer charge $2.70/month from $23.64 to $26.34. The margin on kWh sales will not be increased. This method was chosen for the same reasons given in residential class.
• GSA2 - Commercial and Industrial accounts (those with maximum demands over 50 kW but less than 1,000 kW) will be increased by raising the margin on kWh sales by 0.314¢ per kWh. The customer charge on these customers will not be increased.
• GSA3 - Commercial and Industrial accounts (those with maximum demands over 1,000 kW) will be increased by raising the margin on kWh sales by 0.264¢ per kWh. The customer charge on these customers will not be increased.
• Outdoor Lighting will be increased by raising the margin on kWh sales by 0.178¢ per kWh. The customer charge on these customers will not be increased.

Again, all these methods are calculated to provide a 2.25% increase in revenue from each class.

TVA, due to similar issues, has announced an end to its Pandemic Relief Credit which we passed on to the members. In all fairness, the pandemic is generally acclaimed finished though its effects are still evident. Regardless, this credit had the effect of reducing TVA’s portion of your bill by roughly 1.5%. In residential bill terms, the removal of this credit will result in an increase of $1.50 per month for each $100 spent. On the average bill, which is roughly $127/month, this will increase that bill by approximately $1.90.

Altogether, the total effect of these changes should be around $4.90 per month for the average residential member or an increase of around 3.8% on that average bill and will commence on October 1, 2023.