Understanding Your Bill

What time period is the bill for?

Pella Cooperative Electric bills members for electricity they have already used.  The typical billing period looks like this:

How Do You Know How Much I Used?

Pella Cooperative Electric puts a meter at every electric account to monitor usage. Each meter is equipped with a special Automated Meter Information (AMI) device. The AMI send your usage information to the cooperative on a daily basis. Monthly meter reads are transferred from the AMR system to calculate your bill. These meters are routinely tested for accuracy.

What Am I Paying For?

The cooperative uses the philosophy that the cost causer should be the cost payer. Having multiple charges in each rate allows the cooperative to bill members as fairly and accurately as possible.

Facility Charge - a flat monthly fee, not dependent upon how much you use. It covers the electrical infrastructure necessary to make electric service available to you. It also covers such things as the installation and maintenance of substations, wires, lines, transformers, etc. Each member pays the same amount, regardless of the energy they use, based on the type of service they receive.

Energy Charge - based on how much electricity you use. Two categories of expenses are combined into the energy charge: wholesale power cost (what it cost to make the power and get it to the substation) and distribution expense (what it cost to get it from the substation to your meter). The rates vary by rate classification and are charged on a per kilowatt-hour basis.

Energy Cost Adjustment (ECA) - This charge changes monthly to accommodate fluctuations in wholesale power costs. Currently, the rates assume a 6.4¢ wholesale power cost. When power costs exceed that amount, the ECA will be positive. When power costs are less, the ECA will be negative. The ECA is based on the amount of energy used, and is applied to all rate classifications, with the exception of the Heat Plus rate during the winter months.

Distribution Cost Adjustment - This is a charge established by Pella Cooperative Electric's Board of Directors annually, based upon the financial needs of the cooperative. All rates will be eligible for the distribution cost adjustment as a per kWh charge. This adjustment allows the Cooperative to share benefits from cost efficiencies as well as charge additional expenses not covered by the base retail rate.

Taxes - Residential customers in the state of Iowa are no longer charged for state sales tax. Local taxes still apply, and will appear on your bills as determined by local officials. Tax on electric service applies to all other non-residential accounts. In some cases, such as manufacturing or farming operations, you may qualify for credits. Consult your tax advisor for questions.