Rate Adjustment In Effect March 1 Implemented Due to Rising Costs

Southwest Electric was incorporated in 1937 as a not-for-profit, Member-owned electric cooperative to serve the rural residents of nine counties in southwest Mississippi. Our mission has always been to provide electricity at the lowest cost possible consistent with sound economic and management policies. We routinely evaluate our rates taking into account the cost to provide electricity and maintain our system. Recent increases in the price of fuels, cost to deliver electricity, and cost of materials and supplies have required Cooperative Energy and Southwest Electric to implement a rate adjustment.

Cooperative Energy operates the power plants that produce electricity, as well as the transmission lines that move electricity to our substations. Southwest Electric and 10 other electric cooperatives across the state purchase electricity from Cooperative Energy. The cost of the fuel to generate electricity and the cost to move the electricity on the transmission lines have increased. Generation and transmission costs represent as much as 75% of a Member’s monthly electric utility bill. Cooperative Energy’s Board of Directors voted recently to increase its rates to account for the increased costs.

After careful consideration, Southwest Electric’s Member-elected Board of Directors approved a small rate adjustment that will go into effect on March 1. Inflation has created an increased cost of materials, equipment and supplies. The cost per kilowatt hour (kWh) of electricity used will increase one-half of a cent. The daily service charge will increase eight cents. Outdoor lighting costs will also increase. The cost of outdoor lighting has remained the same for the last 24 years.

“These decisions do not come lightly,” said CEO, Kevin Bonds. “The Boards of Directors for both Southwest Electric and Cooperative Energy work in the best interest of our Members. It is necessary for us to occasionally adjust our pricing structure to provide our Members with the electricity they need. We believe that reliable electric service at a reasonable price is something that you can count on and that we deliver that to 25,000 homes and businesses daily.”

For more information about rates, please visit our Residential Rates and Fees and Charges pages.