Ozark Electric members must reject co-op’s ‘demand rate’ system

Mitch Sims
| Springfield News-Leader

In the April electricity bills, Ozark Electric Cooperative (OEC) has implemented a new itemized bill called “Demand Charge.”

OEC is a member-owned electric cooperative serving nine counties in the southwest Missouri region, including western Greene and Christian counties. OEC is headquartered in Mt. Vernon.

The question is a new controversial billing fee, because it is a fee for “kilowatts” that pass through the meter, as opposed to the kilowatt-hours (kWh) that we are all familiar with. KWh is the amount of electricity consumed by the use of appliances in the home. OEC has determined that $3.75 per kilowatt is a “fair” rate for the kilowatts that pass through members’ meters during a 15 minute peak period, during a billing period. If this sounds complicated, it is! Members are extremely upset about the new billing scheme because it removes all ability to manage the final bill, leaving members with no control over their billing costs. OEC tells us that we can manage our total bills by using just one major appliance at a time.

Really? Are you serious? OEC tells us that we can’t cook and do laundry at the same time; we can’t do laundry and put a load in the dryer at the same time; and God forbid we do laundry while we cook, and the air conditioner, the water heater, and the well all come on at the same time. If that were to happen, it would create a very high demand, which in turn would create a very high electric bill. The demand charge billing platform implemented by Ozark Electric is too burdensome for those members who are conservative in their electricity usage, those on low or fixed incomes, and those solar owners who have net metering.

Members have spoken to OEC management and the board of directors to voice their concerns, but to no avail. Recently, several state legislators, including Secretary of State Jay Ashcroft, 1st Assistant Attorney General Jay Atkins, Senator Mike Moon, and several state representatives gathered at a meeting in Republic to hear members’ stories about how demand charges have affected their lives. Those legislators have promised to speak to Ozark management and the board of directors to find out why and how demand charges are being forced on co-op members. We all know that everything has gotten more expensive. No one is disputing that the co-op needs to raise its rates, the dispute is the demand charges and how they are implemented, and the general lack of transparency.

OEC CEO Patrick Oehlschlager has stated: “The demand is here to stay.” He went on to say that demand billing is a “fairer” way to bill for electricity because we are no longer paying for our neighbors. Our response to that is: “Mr. Oehlschlager, we would like to go back to paying for our neighbors, it was much cheaper and much more manageable. We want our lives back.”

There will be an election on July 26th during the Ozark Electric Cooperative Annual Meeting at Mt. Vernon High School. Voting will be in person only, from 10:30 a.m. to 1 p.m., with a drive-through option for those with limited schedules. The election is for three members of the Board of Directors. Please exercise your right to vote and vote for candidates who oppose the current demand billing platform and who support greater transparency in OUR electric cooperative.

Mitch Sims lives in Clever and is a member/owner of the Ozark Electric Cooperative.