Q – 1. Why are energy costs going up? Why are you raising rates?

• Inflation affects us too, and the co-op’s costs are rising just like yours. We’ve seen the cost of materials (poles, wire, transformers etc.), supplies and equipment rise significantly – doubling in some cases – over the past five years.

• Our wholesale power costs are rising. South Carolina co-ops don’t generate their own electricity. We buy wholesale power from several sources, including Duke Energy and Santee Cooper. Those sources are raising their wholesale power prices, just as they raise rates on their direct customers.

• Government regulations could drive up power costs even higher. The EPA is requiring power producers to adopt expensive and unproven technologies in the push to reduce carbon emissions. These new regulations threaten to drive up the cost of generating electricity. That raises our cost to buy it and the price at which we sell it to you.

Q – 2. How is V.C. Summer contributing to this?

• Our rates aren’t rising directly due to V.C. Summer. Debt from that project has been factored into our rates for years already, making up a small fraction of your monthly bill.

• However, there is an indirect impact on rates from V.C. Summer. After that project’s failure, Santee Cooper agreed to a settlement that required a four-year rate freeze.

• That freeze has helped keep our rates stable for years, but it ends on Dec. 31, 2024.

• Once the freeze ends, Santee Cooper will seek to charge its customers, including us, some $750 million for unbudgeted costs it claims it incurred during the rate freeze. That’s in addition to Santee Cooper’s other planned rate increases.

• Our long-term contract requires us to pay for about 70% of Santee Cooper’s costs, but we are scrutinizing these rate freeze expenses to determine what’s fair for co-ops to pay.

Q – 3. What is the co-op doing about it?

• We work with other co-ops and our partners to manage these costs and soften the impact on our members.

• We work with CEEUS, our materials supplier, to buy supplies and equipment at the lowest possible prices, in part by buying in bulk with other co-ops.

• We work with South Carolina Power Team, the electric cooperatives’ economic development operation, to recruit new industries to our area. Those businesses bring in new revenue that we use to offset some of these rising costs.

• We work with Central Electric Power Cooperative, our power supplier, to negotiate the lowest possible prices for wholesale power.

• We join with other co-ops to fight to better energy policy at the State House and in Congress, pushing back on regulations that drive up costs for our members

Q – 4. What can I do about this? How can I save money on my power bill?

• Take steps to make your home more energy efficient.

• A typical home’s heating and air system contributes to more than half of its monthly power bill. HVAC systems have to run overtime to continuously heat and cool poorly insulated homes, and that drives up your bill.

• Take advantage of Palmetto Electric’s energy savings programs like H2O Select, Smart Thermostat and Beat the Peak.

• Be mindful of when and how you consume electricity. Consider installing devices like smart thermostats and water heater timers to help you save money by automatically managing your energy consumption during “peak” periods when energy costs are highest. Consider joining Beat the Peak to get alerts when it’s time to conserve energy and save money.

Q – 5. What is the monthly facility charge? The facility charge covers the majority of the distribution costs associated with providing electricity to homes and businesses including equipment, materials, labor, and operating costs necessary to serve each member in Palmetto Electric’s service territory, regardless of an individual member’s electric consumption. Distribution costs account for approximately one-third of the overall bill.

Q – 6. Why are the monthly facility and outdoor lighting charges changing? The facilities and outdoor lighting charges are changing to more fairly recover the costs of delivering reliable electricity to Palmetto Electric’s members. Like many other industries, in recent years, Palmetto Electric has experienced supply chain issues and steep cost increases for some of our necessary equipment needed to maintain the local system, including power lines, substations and outdoor lighting.