This helps to minimize the need for borrowing of additional funds for capital expansion. One of the reasons for this is the practice of reinvestment of all margins, or excess revenues, back into the electric system. NRECA provides a great explanatory video for members to watch here.īRMEMC, and other cooperatives supplied by TVA, enjoy some of the lowest electric rates in the country. Read more information about the Customer Charge here: BRMEMC Customer Charge Research Fixed Service Charge, Monthly Facilities Charge, etc.) and many other electric utilities don’t itemize this charge on the monthly bill. All electric utilities charge a fixed monthly charge although they may have a different name for this charge (i.e.BRMEMC simply follows the approved rate design and charges each metered account the appropriate customer charge, based on the type of service. Rates are authorized and detailed in TVA’s RS and GSA rate schedules. BRMEMC adjusts its customer charge rates as needed based on information provided from that study which evaluates the fixed-cost expense required to serve each meter by class. Customer charges are determined through a “cost of service” study. For example, all residential members pay the same customer charge, while others in the commercial or industrial classes pay different amounts based on their individual class of service. BRMEMC has different customer charge amounts assigned to different classes of members. Members who use larger amounts of energy pay for this variable cost through the energy charge portion of the rate. The second component of the rate is the energy charge (kilowatt-hour charge), which can be looked at as a variable cost recovery charge.The customer charge helps BRMEMC keep the cost of constructing infrastructure and operating our business fair for all members. The fixed customer charge is one way for us to recover our fixed costs such as the cost of constructing our electric infrastructure, installing meters, reading the meters each month, billing the members, collecting payments each month, and paying taxes, insurance, etc.
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