Natural Gas FAQs & Terms

With inflation at a 40-year high for much of 2022, energy costs as well as key commodities used in materials, supplies and equipment have been impacted.

We continue to experience price increases in materials such as steel, copper and aluminum. Steel and aluminum remain about 20% higher than 2019 levels; both are key commodities used in materials and components such as trucks, transformers and electric cable. Also affected are the cost of big-ticket items such as bucket trucks and digger derricks. We have also seen increases in the costs for poles, conductors, cabinets and meters.

Besides inflation, energy policies and regulations are partially driving increases in energy costs.

To maintain fair and equitable rates, cost of service studies for electric and natural gas were utilized in the development of the rate adjustments. Our goal is to curb rate increases for our electric and natural gas members at or below inflation, while collecting sufficient revenue to cover expenses. As a not-for-profit cooperative, we generate very modest profit margins to meet our debt obligations. Our focus is serving our members at the lowest cost possible.

The new rates will be reflected on the bills you receive in April 2023.

For a single phase electric service (which includes most residential accounts), the minimum monthly charge will be $33. The minimum monthly charge is the total of the facility charge and the member service charge.

For residential electric service the facility charge will increase $1 while the member service charge remains at $5:

Facility Charge + Member Service Charge = Minimum Monthly Charge

$33 + $5 = $38

For residential and farm natural gas accounts, the service charges and member service charge are unchanged:

Facility Charge + Member Service Charge = Minimum Monthly Charge

$20 + $5 = $25

As a distribution cooperative, many of our expenses are related to the delivery of energy to you - or in other words - the basic cost to provide you with energy. The facility charge covers most of the costs incurred for the infrastructure that carries electricity or natural gas to your home, farm or business. This includes power lines, transformers, pipelines, trucks, labor and other expenses the cooperative incurs to ensure energy is available when you need it, no matter how much energy is sold.

The member service charge is a flat fee that covers administrative costs of managing members’ accounts. This includes billing, postage, facilities, software systems and personnel.

A residential electric account with an average use of 750 kWh per month will see an increase of 7.63% or $10.40.

A residential natural gas member who uses 100 therms will see an increase of about $4 on their monthly bill. A residential natural gas member who uses 125 therms per month will see an increase of about $5 on their monthly bill.

Note that the energy supply charges, charge per therm, varies and could change each month based on the monthly cost of purchased natural gas.

We advance purchase and utilize storage for the majority of natural gas that is forecasted to be used by our member-consumers, in some cases years in advance, layering in purchases during dips in the market to help reduce exposure to volatile spot market prices, as occurred in February 2020.

Based on a comparison of 2022 rates, the average facility charge at electric cooperatives in Illinois was $41.29. The additional dollar added to our facility charge will keep JCE in the ninth position from the lowest price (the additional $1 would increase the average by $.04 or $41.33).

The energy charge consists of the kilowatt hours of energy used by a member. The generation charge is the kilowatts of capacity required to meet demand requirements. Based on a member’s kWh use, it can be seen as the long-term investment for the steel-in-the-ground facilities of the power supplier, which helps stabilize volatility that might occur in energy markets.

Different service types require different sized transformers, conductors and other equipment. The costs associated with the different equipment are covered only by members who have these accounts. This is the most equitable and fair way to allocate costs across all members.

The rates are developed based on historic data. The PCA is determined by how much the monthly power cost per kWh is above or below the base power cost. The PCA can go up or down or remain the same.

We encourage members to reach out to us if they are concerned about being able to pay their bills. We work with members on a case-by-case basis regarding options and assistance that may be available.

We offer our members on fixed incomes a three-pronged approach to managing their bills:

• Education and awareness of their use
• Conservation through energy efficiency programs
• Assistance through Low Income Heating Energy Assistance Program (LIHEAP) and our Neighbor-to-Neighbor Care Funds when appropriate.

Members are encouraged to be proactive if they are having trouble paying their energy bills. Staying current will minimize additional fees.

If nothing else changes and use remains the same, members on budget bill will see a small increase on their May bill; amounts will then recalculate in November. If the member would like to increase the budget billing amount by 8% this can minimize a true-up in the fall due to the increase. Please call our office if you have any questions.

Inflation has hit JCE Co-op relentlessly with double digit increases almost across the board for all materials. The board of directors and our team continue to be very conscientious of these increased costs, and material shortages. Keeping safety at the forefront, our team is managing the use of materials as efficiently as possible.

By following our strategic objectives of operational excellence, growth and enhanced cooperative value, the average rate increase of 8 percent across member classes is well below the average 2022 electricity price increase of 14%. Our goal is to curb rate increases for our electric, natural gas and broadband members at or below inflation.

We continue to work with other cooperatives and state and national associations to gain support on legislation and regulations that impact the cost of energy.

The electric heat rate is available to residential accounts having less than 75kW electric demand and meet additional requirements:

• Electric heat shall be the primary source of heating in the residence.
• The member shall have permanently installed residential electric heating equipment of 5,000 watts or more or a geothermal system.
• The member shall have at least two major electric appliances in use—other than the electric heat. Major appliances include an electric range, built-in electric range and oven, electric water heater and electric clothes dryer.
• Fifty percent or more of the electrical use is for residential purposes.
• JCE Co-op reserves the right to inspect the member’s service to determine that all the requirements are met.

JCE Co-op offers various bill payment programs including budget billing and levelized billing. A budget billing plan allows you to pay the same amount each month, based on your previous 12 months of service. Levelized billing uses a “rolling average”. While the amount due will vary from month to month, this plan can help take the shock out of your energy bill during extremely cold or hot weather.

There are many steps members can take to lower their monthly energy costs. With the helpful tools and resources JCE Co-op offers, using energy wisely is easier than you think. We can work together to use energy efficiently. You can find energy saving information on our website.

JCE Co-op offers members free phone consultations with our energy advisor and an extensive energy efficiency incentive program. For more information about these programs, contact our energy advisor John Scott at 800-858-5522, ext. 1339.

Energy costs are calculated by power providers based on peak use. Peaks refer to the time of day when the most energy is used. During the summer, this can occur between 11 a.m. and 7 p.m. During the winter the peak may occur in the colder, evening hours from 4 to 10 p.m. Performing certain chores during off-peak hours or on weekends can help reduce the cooperative’s overall peak consumption and overall costs. By changing your home’s energy habits, you can help reduce the cooperative’s energy bill.

Sand Prairie bills are not affected by these changes.

Members are not paying for other members to get fiber. Sand Prairie is borrowing from the equity of JCE Co-op, which over time will be paid back. We have also obtained a separate credit facility (loan) to finance these projects. To date, JCE also has received five county, state and federal grants to aid with the buildout of fiber to some under- or unserved areas, and we continue to pursue additional funding opportunities.

In the broad prospective, rural broadband (specifically fiber) is recognized as playing a major role in the quality of life and economic health of our communities. Broadband can make a difference in the prosperity of our rural communities, giving our current and future members the same opportunities and access as our urban counterparts. The more members and businesses, the more accounts to spread fixed costs across, which help stabilize future rates for all JCE Co-op members.

We encourage you to call us at 800-858-5522 if you have questions. One of our member care or billing representatives will be glad to assist you.