Billing & Usage
Billing & Usage
Rate Adjustment FAQs
To ensure our rates stay fair and accurately reflect the true cost of providing service, FMEC completed a detailed cost-of-service study. Based on that study, we are making some adjustments beginning with the October billing statements.
The impact varies by member, depending on your service type and usage patterns. For some, this may mean a slight increase, while others may see a slight decrease. These adjustments are designed to ensure every member pays their fair share based on actual costs. This helps support the long-term reliability and strength of our cooperative.
The service charge covers the cost of maintaining service to your property, regardless of how much electricity you use.
A rate class groups members together based on similar service characteristics, such as how electricity is used and delivered to your property. Your rate class may have been updated to better align with our current administrative policies.
Demand refers to the highest amount of electricity you use at any given moment, measured in kilowatts (kW). This is different from energy usage (kWh), which measures the total amount of electricity used over time.
Billing
FMEC uses Sensus® Advanced Metering Infrastructure, which will report your meter usage. Using Sensus® Advanced Metering Infrastructure allows FMEC to provide you a more consistent billing period each month.
Your current bill reflects the amount you owe for electricity used in the previous billing period, which is due each month on or before the due date. Payments received after the due date are subject to late penalties and/or disconnection of electric service.
Please call our office at (507) 373-6421 or (800) 734-6421 for any billing questions.
Usage
Electricity is billed in kilowatt-hours (kWh), and you are billed based on the kWh use reported on your electric meter. A kilowatt-hour is a unit of electricity equal to the energy supplied to a circuit in one hour. When you pay for 1 kilowatt-hour of electricity, you're buying 1,000 watts of electricity used continuously for one hour.
For instance, a 100-watt bulb burning for 10 hours requires 1 kWh of electricity. Our typical residential consumers use approximately 1500 kWh of electricity each month.
It is a good idea to take notes when your usage is likely to be higher or lower than normal. For example, corn dryers, fans, air conditioners, and hot tubs can raise usage considerably. Likewise, if you've been on vacation for an extended period, lower usage would be expected. Making notes about these events will help FMEC investigate any metering/billing issues that may arise.
Demand
Demand refers to the amount of electric power required by members at any given moment. It is typically measured in kilowatts (kW) and represents the instantaneous electricity consumption. Demand can fluctuate throughout the day based on factors such as time of day, weather conditions, and seasonal usage patterns.
Understanding electricity demand is crucial for utilities because it helps determine how much power must be generated to meet consumer needs while ensuring a reliable power supply. Utilities often monitor peak demand periods, times when electricity consumption is at its highest, since these periods can affect pricing structures and the need for additional generation resources.
By understanding demand, utilities can help members manage their demand charges, which are fees based on the maximum amount of power used during a billing period. This approach encourages more efficient electricity use and reduces the strain on the grid during peak times. Overall, effectively managing demand is key to balancing supply and demand, optimizing grid operations, and maintaining stable electricity prices.
Understanding Demand Video