Customer Charge
Customer Charge
A facility charge is a monthly charge that HOTEC members pay to help cover the
basic cost of bringing electricity to their location. It covers some of the
expenses the cooperative incurs regardless of how much electricity is sold. The
facility charge helps cover such things as:
* Trucks, wire, transformers and power poles needed to build
and maintain the electric distribution system;
* Labor to build and maintain the lines;
* Cost of insurance, interest, and taxes.
Because all cooperative members benefit from having reliable electric service
available when they need it, the facility charge allows everyone to pay a share
of the basic costs.
Members sometimes ask why HOTEC's facility charge is higher than neighboring
electric utilities. It's because of our low consumer density; HOTEC serves an
average of six customers per mile of line. Compare this to a city where the
average density is easily more than 30 customers per mile of line. It is always
more economical to serve areas of higher density. However, HOTEC's average rates
remain competitive with those neighboring utilities.
HOTEC serves a diverse membership. Some of our members use a lot of electricity
all year long, and some may use electricity only one or two months per year.
Whether you use a lot or a little, the cost of getting electric power to your
location remains the same. And that is why your electric bill has two separate
charges: the facility charge to cover basic costs, and the per kWh charge for
the actual amount of electricity consumed.
We hope this brief explanation helps answer your questions about the facility
charge portion of your electric bill. Please call us if you have any billing
questions.
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McGregor Office 1111 Johnson Dr - Po Box 357 McGregor TX 76657 254-840-2871 800-840-2957 (Toll Free)
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Rosebud Office 128 Main St - PO Box 598 Rosebud TX 76570 254-583-7955 877-468-3289 (Toll Free )
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