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New Residential Rates - By Timothy J. Power, CEO

Timothy J. Power, CEO

New Residential Rates
By Timothy J. Power, CEO

Last October DS&O asked Cooperative Finance Corporation (CFC) to begin a cost of service study, which included a revenue requirements assessment, cost of service study, and eventually rate design recommendations.

The Cost of Service Study (CSS), which looked at each rate class, showed a combined 4% deficit in revenue.  The Board of Directors (Board) decided to focus on the Residential rate classes this year, since these classes bring in approximately 70% of the cooperative’s revenue.  It is our plan to look at the Commercial rates in 2017.  The CSS showed that all Residential rate classes had a monthly cost to serve close to $50.00.  This is at least $22.50 more than we currently charge for any of our Residential rate classes.

The Cost to Serve By Timothy J. Power, CEO

Timothy J. Power, CEO

Last month I explained how power costs, namely demand charges, are a key component of DS&O’s finances.  This month I want to summarize results of our recently completed cost of service study.

The study results show DS&O is about 4% short in revenue for all rate classes combined.  Ideally, we want to make sure every rate class brings in enough revenue to cover its associated costs.  The study showed that while there are a handful of individual rate classes that do “carry their weight”, most rate classes come up short.

Since the six residential rate classes make up over 70% of DS&O’s revenue, that is where we will initially direct our focus.  The other rate classes will be addressed later, probably in 2017.


DS&O will begin collection procedures as the weather allows. Some of our members may qualify for LIEAP the (Low Income Energy Assistance Program). LIEAP is a federally funded program that helps eligible households pay a portion of their home energy costs by providing a one-time per year benefit. Click Here to learn more about LIEAP.

DS&O monthly billing process is as follows:

The Biggest Piece of the Pie - By Timothy J. Power, CEO

Timothy J. Power, CEOAs discussed in previous newsletter articles, we are engaged in a cost of service study for the cooperative.  A cost of service study does just what it says - it looks at the cost to service the different rate classes we have.  It helps determine whether our rates are too high, too low, or just right for each class.

Director Elections

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DS&O's coverage area is divided into three districts. Individuals who wish to run for a director's seat need to be active members of the cooperative and bona fide residents of the district they wish to represent. Potential candidates need to be nominated by written petition signed by at least 15 members who are residents of the cooperative. Signed petitions were to be returned to the DS&O cooperative office in Solomon office by 5:00 p.m. on Monday, February 1, 2016.

The following members met all the above requirements and will be place on the 2016 ballot.

Seal Air Leaks with Caulk

Did you know heating and cooling accounts for roughly half of your home’s energy use? Caulking cracks and gaps around windows, doors and spaces around wires (telephone, electrical, cable and gas lines), water spigots and dryer vents can pay off with big energy savings.

Explore LED Holiday Lighting Options This Season

Holiday lighting takes many shapes and forms. Whether you prefer simple lighting decorations or a more elaborate statement of holiday festivity, it all starts with the selection of the lights themselves.  If you are looking for new holiday lighting this year, be sure to check out a safer and smarter lighting option—LEDs.

Stay Safe and Warm in Ice Storms

Heavy accumulations of ice can bring down utility poles, trees, and limbs—knocking out power for days at a time. In addition to shutting down power and communications, ice can make transportation dangerous, if not impossible.

Simple Steps to Boost Home Heating Efficiency


Cold winter temperatures can drive up heating costs. However, there are simple steps that can be taken to help cut those costs by making your home heating more efficient.

These tips from the Energy Education Council will increase heating efficiency and help you manage your heating expenses:

2014 Capital Credit Allocation Notice To Be Mailed!

One of the benefits of being a member-owner of an electric cooperative is sharing in the financial prosperity of the cooperative. The excess margins remaining after expenses are returned to members in the form of capital credits.


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