Rate Adjustment – Letter from SCI REMC CEO, James Tanneberger

Dear SCI REMC Members,

The team at SCI REMC considers it a great honor to serve you. Our daily mission is to enhance your lives now and in the future. We have a clear vision about how to complete that mission, and our key goals ensure we stay on track. We’re proud of the impact we’ve had by providing safe, reliable, and affordable services to you.

Serving as your CEO for the past six years has been an honor and pleasure. Our team and board of directors work hard to manage costs, maintain rate stability, and offer enhanced services, like high-speed internet. For 10 years, we’ve avoided rate increases, and we were on track to maintain that record for another 10 years.

However, recent years have brought unprecedented challenges. Severe storms, inflation, and rising expenses from the global energy crisis have affected us. We’ve adapted to handle these challenges, but our world has changed. We must evaluate the long-term health of the co-op.

Earlier this year, our power supplier, Hoosier Energy, evaluated and redesigned their wholesale power rates to better serve their members. Periodic rate reviews are essential to ensure fair and sustainable pricing structures. SCI REMC also has a responsibility to evaluate our rates regularly. Because of that, we carried out a cost-of-service study as well. Our focus areas included materials, labor, and wholesale power pricing, and the results confirmed whether our current rates accurately reflect our economic landscape. Information like this helps protect the company’s long-term health.

Our findings reflect the changes in the world and energy industry over the past two years. Despite the shift toward renewable energy, coal and natural gas are still the main sources of electricity generation. Unfortunately, the costs of these fuels have risen over the past year. Coal prices surged 300%, and natural gas costs rose 100%. These price fluctuations directly affect our wholesale rate with Hoosier Energy.

We take responsibility for carefully managing our expenses. When possible, we’ve shielded members from cost increases. Our primary mission as a not-for-profit co-op is to serve our members, not profit. However, a rate adjustment is necessary because of current economic challenges.

We expect an unavoidable increase in our rates in early 2024. Our team and board of directors are still reviewing the cost-of-service study. We’ll share more information in upcoming newsletters and on our website. The new rates will support our commitment to transparency and our efforts to maintain reliability.

We understand these changes mean added costs in an increasingly expensive world. Your questions and feedback are valuable to us as we set goals to continue our mission. For more information and saving options, visit sciremc.com.

We appreciate your understanding, support, and patience during these challenging times, and we look forward to serving you with critical and life-enhancing services for years to come.

In service to you,
James Tanneberger