![]() ![]() In other words, the only way we can actually return margins back to our membership is in the form of reduced electric rates. Our contract with TVA requires BRMEMC to reinvest any and all margins back into our electric distribution system. However, because BRMEMC falls under the authority of the TVA Act of 1933 as well as TVA’s Wholesale Power Contract requirements, BRMEMC and other TVA Cooperatives are restricted in what they can do with excess revenue. At some electric cooperatives across the nation capital credits may be paid back over time to the members or reinvested into the electric system to lower borrowing needs. Oftentimes, these members have grown used to these payments, commonly referred to as “patronage capital” or “capital credits”. Members who are accustomed to being served by non-TVA cooperatives question our practice of not returning margins to our membership. 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.
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