MAKING HARD DECISIONS
Rate adjustment went into effect April 23, 2025 (reflected on bill due June 14)
As a not-for-profit, member-owned cooperative, Firelands Electric designs our rates to reflect our expenses and nothing more. Unlike investor-owned utilities, we have a goal not to make a profit, but to supply reliable electricity at the most affordable possible price.
Like you, the cooperative has been feeling the effects of rising costs for goods, materials, and services. Providing reliable power that is also affordable has continued to become more difficult year after year. As members of the co-op community ourselves, Firelands Electric’s board of trustees and management never take the idea of making a rate adjustment lightly — after all, it will also affect us, our families, and our neighbors. Unfortunately, we’ve found ourselves in a position where a change is necessary to keep ahead of these rising costs. The cooperative’s board recently made the tough decision to implement a rate adjustment, which will go into effect on April 23.
The board and I frequently look at the co-op’s bottom line, making sure that our incoming and outgoing revenue stay in line with one another. It can be a precarious balancing act to keep costs down for members while also maintaining enough capital to make necessary repairs and upgrades, as well as handle the occasional unforeseeable emergency (such as a lightning strike at a substation). Over the past few months, the board has spent a great deal of time poring over current expenses and future forecasts to ensure that Firelands can remain a reliable and safe source of electricity over the next decade. They’ve also thoroughly investigated how to do this while also having the least impact on our members’ wallets. Rather than make larger increases here and there, the co-op is focusing on making more frequent, smaller adjustments as they are needed. Implementing these minor revisions now will prevent the need to make much bigger changes later.
Despite the upcoming rate adjustments, Firelands Electric’s rates remain competitive with Ohio’s other electric providers, including 25 co-ops and investor-owned utilities Ohio Edison/First Energy and AEP. For example, in July 2024 the average cost for a 1,500-kilowatt-hour bill among these 27 electric utilities was $246.26. This same amount of electricity will cost Firelands Electric members $249.24 after the new rates take effect. In fact, this amount will still be less than the investor-owned utility average of $263.38. Residential members who use more than 500 kWh per month and most commercial accounts will see rate changes to their bills due in May.
While we wish we never had to make adjustments to our rates at all, the fact is that it’s sometimes necessary to stay ahead of the curve and keep dependable power flowing to our members. The board has made every effort to keep these changes to a minimum and hope that by making smaller changes now, our members won’t have to experience bigger ones later.
The chart provided shows an example of how these rate adjustments will affect you. You can also visit our Rate Schedules page or Contact Us for more information.
In the video below, local journalist and podcaster Steve Ball does a deep dive into the co-op's upcoming rate adjustment.