This notice is to remind our seasonal account members of our policy on our monthly distribution service charge. Oftentimes, members with seasonal accounts request to have their power disconnected while they are away.
However, our policy states that all members are required to pay 12 months per year of the distribution service charge, which is $38 per month. If members still choose to have their service disconnected, they will be back-billed for the distribution service charge and will have to pay a reconnection fee.
This policy is in place to ensure equitable billing for all of our members. Even if a member is not using any electricity at a specific location, NWEC is still responsible for the costs associated with that location and keeping electricity available to that location when the member chooses to turn it on again.
NWEC pays its power supplier and transmission service a demand charge 12 months of the year based on the peak summer demand. NWEC also pays taxes, depreciation, facilities costs, right-of-way costs and maintenance 12 months a year.
Our cost-of-service studies, which are used to calculate rates, are based on a year-long term, so any account that is not charged on a 12-month basis is underpaying the actual costs to NWEC. This causes a deficiency, and billing our full-time residential members a higher distribution service charge to cover the difference caused by our seasonal account members would not be fair. By charging all members the distribution service charge for all 12 months, we are equalizing the charges so that everyone pays their fair share.
If you have any questions, please call our office at 419-636-5051.