A message from Tom Batchelor regarding future rates
Like many of you, we have felt the effects of rising costs in our own households and in our work at the cooperative. We understand firsthand the strain that higher grocery bills, housing expenses, and everyday necessities can place on a family budget. As your locally owned, not-for-profit electric cooperative, we share your concerns and take the responsibility of any added expenses very seriously.
Since April 2018, Haywood EMC has worked diligently to avoid base rate increases. We have managed expenses to provide safe, reliable electric service at the lowest possible cost. Additionally, Haywood EMC has returned more than $1 million annually to our membership for the past 7 years through Capital Credits, a unique benefit of electric coops.
Looking ahead, developments at the wholesale level will likely impact our costs. Duke Energy Carolinas and Duke Energy Progress, which have operated separately since their merger, are expected to consolidate into a single company, Duke Energy Carolinas. This transition is driven by system changes, including investments in renewable generation, infrastructure upgrades, and the addition of large energy users such as data centers.
As a result of this consolidation, Haywood EMC anticipates an increase in wholesale power costs beginning in early 2027, when the unified organization becomes operational. Because wholesale power accounts for the largest share of your electric bill, these changes will require adjustments to our retail rates at that time. We want to assure you that we are proactively preparing to manage these changes as responsibly as possible.
We have made every effort to delay rate increases and are working with Duke to minimize the impact of these changes. Final cost details are not yet available. We will continue to communicate transparently as more information becomes available and as we approach the planned merger date.
Our commitment remains to provide safe, reliable, and affordable electricity. As a not-for-profit, any revenues above operating costs are returned to you as capital credits. Every decision is guided by the long-term interests of our communities.
Increased Costs
Since the pandemic, our costs for materials, labor, and equipment have risen due to higher demand, supply chain issues, shortages, and tariffs. In the electric utility industry, costs have risen across all areas of the business.
- Power Poles - 25% - 40%
- Conductor wire - 30% - 50%
- Transformers - 70% - 100%
- Copper wiring - 50%
- Meters - 20% - 35%
- Protective devices - 20% - 35%
- Vehicles - 25% - 40%
- Bucket trucks - 20% - 50%
Over the last 5 years, the costs of providing power and maintaining the electric system have increased dramatically and are expected to continue rising. We know firsthand how difficult it can be to keep up with these increases, both as an organization and as individuals facing higher costs at home. With higher demand from data centers, a growing population, and new-generation needs stemming from older plant closures, our wholesale power costs continue to rise.
Therefore, an increase in electricity rates is necessary due to higher costs for labor, materials, and purchased power. We are working diligently to control expenses and, as a not-for-profit utility, will continue returning any excess over operating costs to you through Capital Credits.
Member-Owner Rates
We have worked to avoid a rate increase, but after 8 years, rising power, material, and labor costs mean we can no longer absorb these costs. We are conducting a cost-of-service study to determine the smallest possible rate increase. As a not-for-profit, any extra funds are returned to you through Capital Credits.
While we do not yet know the exact month, we anticipate that new rates will begin later this year. We will provide updates as soon as an effective date is confirmed.
We continually seek innovative ways to keep costs low while providing affordable and reliable service, even as business expenses rise. Your needs and the well-being of our community remain at the forefront of every decision we make.
Thank you for your continued trust and partnership with Haywood EMC. We remain dedicated to serving you with integrity and transparency.
Tom Batchelor, PE
Haywood EMC CEO/EVP