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CECC Proposes New Rates

Craighead Electric Cooperative Corporation (CECC) strives to provide our members with safe, reliable and affordable electricity. The co-op’s rates have remained steady for more than a decade, but recent challenges affecting CECC’s financial condition, including increased operating costs, plant growth due to increased electricity sales and inflation at large, have necessitated a change in electric rates.

Following industry best practices, the cooperative commissioned an engineering consulting firm (Toth & Associates) to review current rates and determine if they are producing sufficient revenue. This is known as a cost-of-service study.

As CECC operates as a not-for-profit cooperative, we must generate operating margins to cover capital credit retirements to members, operating costs and principal on long-term debt while maintaining sufficient equity.

The independent analysis determined CECC needs to increase our retail rates, which have not changed since May 2010. The CECC Board of Directors reviewed the cost-of-service study and, upon cooperative staff’s recommendation, voted in favor of a rate adjustment to increase system revenue by 9.3%. Note: The expenses and revenue of empower, Delivered by Craighead Electric (a wholly owned broadband subsidiary) are separate from CECC and did not influence the cost-of-service study or the decision to propose new rates.

CECC will submit the rate adjustment request to the Arkansas Public Service Commission in July. If approved, it will go into effect with usage beginning Oct. 1, 2022. The 9.3% reflects the average increase across all rate classes — residential, commercial and lighting, including an increase in the service availability charge. In addition, CECC plans to rebase the cost of energy and cost of debt adjustment revenues into the new kWh rates. These charges are reflected as either debits or credits on members’ statements each month.

If implemented, these rates will impact members in different ways, depending on their lifestyle and situation. The largest impact to a typical residential account will be in the service availability charge. For example, a typical bill for a residential member with one meter using 1,000 kWh a month would go from $112.45 to $126.58. The service availability charge helps cover fixed costs, such as meters, transformers and lines necessary to provide electricity to a service regardless of its usage. It is often referred to as a minimum bill.


Notice is hereby given that the board of directors of CRAIGHEAD ELECTRIC COOPERATIVE CORPORATION has approved changes in the following Arkansas rate schedules of this Cooperative as set forth below. The proposed rates are designed to increase overall system revenue from Arkansas consumers by 9.3%. The effect of the rate change on individual consumers will vary depending on the class of service and the amount of electricity used.

Summary of Proposed Rate Changes

Rate Schedule 1: Residential (Farm & Home)
Line ItemExisting RateProposed Rate
Service Availability Charge$16.50/Mo$30.00/Mo
All kWh$0.08207/kWh$0.09618/kWh
Energy Cost Adjustment$0.01016/kWh$0.00004/kWh
Cost of Debt Adjustment$0.00072/kWh$0.00000/kWh
Rate Schedule 2: General Service Small
Line ItemExisting RateProposed Rate
Service Availability Charge 1Ø$17.50/Mo$30.00/Mo
Service Availability Charge 3Ø$24.50/Mo$52.00/Mo
All kWh$0.09206/kWh$0.09618/kWh
Energy Cost Adjustment$0.01015/kWh$0.00003/kWh
Cost of Debt Adjustment$0.00074/kWh$0.00000/kWh
Interruptible Credit$0.02000/kWh$0.02000/kWh
Rate Schedule 5: Irrigation – Non Load Control
Line ItemExisting RateProposed Rate
Service Availability Charge 1Ø$57.25/Mo$67.25/Mo
Service Availability Charge 3Ø$59.25/Mo$79.75/Mo
Irrigation Season:  
All HP Demand$8.08/HP$11.02/HP
All kWh$0.09826/kWh$0.11431/kWh
Non Irrigation Season:  
All kWh$0.09826/kWh$0.11431/kWh
Energy Cost Adjustment$0.01444/kWh$0.00432/kWh
Cost of Debt Adjustment-$0.00023/kWh$0.00000/kWh
Rate Schedule 6: Irrigation – Load Control
Line ItemExisting RateProposed Rate
Service Availability Charge 1Ø$67.25/Mo$77.25/Mo
Service Availability Charge 3Ø$79.75/Mo$89.75/Mo
Irrigation Season:  
All HP Demand$3.20/HP$4.50/HP
All kWh$0.09222/kWh$0.10127/kWh
Non Irrigation Season:  
All kWh$0.09222/kWh$0.10127/kWh
Energy Cost Adjustment$0.01427/kWh$0.00415/kWh
Cost of Debt Adjustment-$0.00027/kWh$0.00000/kWh
Rate Schedule 8: General Service Medium
Line ItemExisting RateProposed Rate
Service Availability Charge$55.00/Mo$80.00/Mo
Winter Rate:  
All kW$5.00/kW$5.90/kW
All kWh$0.05384/kWh$0.06489/kWh
Summer Rate:  
All kW$8.35/kW$10.15/kW
All kWh$0.05384/kWh$0.06489/kWh
Energy Cost Adjustment$0.00945/kWh-$0.00067/kWh
Cost of Debt Adjustment$0.00084/kWh$0.00000/kWh
Rate Schedule 9: General Service Large
Line ItemExisting RateProposed Rate
Service Availability Charge$100.00/Mo$105.00/Mo
Winter Rate:  
All kW$6.40/kW$7.50/kW
All kWh$0.04796/kWh$0.05901/kWh
Summer Rate:  
All kW$10.72/kW$13.80/kW
All kWh$0.04796/kWh$0.05901/kWh
Energy Cost Adjustment$0.00902/kWh-$0.00110/kWh
Cost of Debt Adjustment$0.00091/kWh$0.00000/kWh
Rate Schedule 10: Seasonal Power – Cotton Gin
Line ItemExisting RateProposed Rate
Ginning Season:  
All HP$1.77/HPRate is discontinued. Members will receive service under the proposed Rate Schedule 9: General Service Large.
All kWh$0.06982/kWh
Optional Rate: 
All HP$4.22/HP
All kWh$0.06982/kWh
Non Ginning Season: 
Service Availability Charge$23.50/kW
All kWh$0.06982/kWh
Energy Cost Adjustment$0.00199/kWh
Cost of Debt Adjustment$0.00176/kWh
Rate Schedule 11: Street Lighting & Security Lighting
Line ItemExisting RateProposed Rate
Security Lighting  
LED – General Service$7.48/Mo$9.00/Mo
100 w HPS***$7.48/Mo$9.00/Mo
150 w Metal Halide***$7.48/Mo$9.00/Mo
175 w MVL***$7.48/Mo$9.00/Mo
150 w HPS***$9.51/Mo$11.03/Mo
250 w MVL***$9.51/Mo$11.03/Mo
250 w HPS***$10.07/Mo$11.59/Mo
400 w MVL***$12.57/Mo$14.09/Mo
LED – Directional Security$15.48/Mo$17.00/Mo
400 w Metal Halide***$15.48/Mo$17.00/Mo
1000 w Metal Halide***$30.76/Mo$32.28/Mo
Street Lighting  
250 w HPS***$16.34/Mo$17.86/Mo
LED – 250 Street Lighting$16.34/Mo$17.86/Mo
Energy Cost Adjustment$0.01034/kWh$0.00022/kWh
Cost of Debt Adjustment$0.00073/kWh$0.00000/kWh
***No Longer Available for new installations  
Rate Schedule 12: Cost of Energy Adjustment Rider
Line ItemExisting RateProposed Rate
Base Cost of Energy$0.034967/kWh$0.045087/kWh
Rate Schedule 15: Cost of Debt Adjustment Rider
Line ItemExisting RateProposed Rate
Embedded Cost of Debt$3,591,264$3,863,499
Rate Schedule 19: Large Power – American Railcar Industries, Inc.
Line ItemExisting RateProposed Rate
Billing Demand Charge$9.81/kW$9.81/kW
All kWh$0.04116/kWh$0.05204/kWh
Energy Cost Adjustment$0.01015/kWh$0.00003/kWh
Cost of Debt Adjustment$0.00076/kWh$0.00000/kWh
Rate Schedule 20: Large Power – Optional Industrial (Over 1,200 kW)
Line ItemExisting RateProposed Rate
Service Availability Charge$100.00/Mo$140.00/Mo
Coincident kW Demand$11.53/kW$11.53/kW
All kW Demand$4.75/kW$4.75/kW
All kWh$0.03535/kWh$0.04590/kWh
Energy Cost Adjustment$0.01084/kWh$0.00072/kWh
Cost of Debt Adjustment$0.00071/kWh$0.00000/kWh

Click here to download a PDF copy of the above-proposed rates. 

The above proposed rates will become effective for bills rendered on or after October 1, 2022 unless on or before such effective date petitions from ten percent (10%) of the member-consumers have been received by the Arkansas Public Service Commission. Petitions should be sent to: Arkansas Public Service Commission, 1000 Center Street, Little Rock, Arkansas, 72201, the mailing address of which is:

P.O. Box 400, Little Rock, Arkansas, 72203-0400.

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