SECO News April 2023
Dear Members,
Did you watch SECO Energy’s 85th Annual Meeting on March 23? Were you one of our 100 prize winners? Watch our Annual Meeting video on SECOEnergy.com to see the list of 100 prize winners to find out if you are a winner. The video is also available on Facebook and YouTube.
Learn more about the Strategy Map, new Mission, Vision and Core Values that take SECO into the future. The energy industry is changing, and SECO has developed an approach to remain focused on our core business, manage the fast-paced changes and rising costs in our industry, operate more efficiently, increase member engagement and overcome labor and supply chain shortages.
We are investing in operational technologies that help us reduce costs by lowering our need to purchase more energy to serve growing demand. A foundational technology investment is the systemwide implementation of an advanced meter infrastructure or AMI. This technology will offer updated SmartHub features, insight into your energy costs and actionable data that will help you manage your usage.
Own an electric vehicle (EV)? Pre-enroll in an EV $7 monthly incentive effective May 1 for members who agree to charge their EVs during Super Off-Peak hours (midnight – 6 a.m.). Learn more about the EV Fast Charger lease or purchase program, I again encourage you to watch the Annual Meeting video and visit SECOEnergy.com for details.
In my 40 years of utility experience, I have never seen the supply chain issues, rising costs and labor constraints that we are experiencing in the current economy. Unfortunately, even as a not-for-profit utility, we are not immune to the economic downturn that started in 2020 with COVID and developed into runaway inflation these past two years. Costs have risen dramatically on nearly everything we purchase to maintain our existing electric system and construct new services. An increase to members’ bills is simply unavoidable. Read more about the customer charge change on page 4 and learn more about the reasons for it in the Annual Meeting video.
Thank you, members, for participating in the governance process of your cooperative! We received a total of 14,375 votes on Annual Meeting business this year. Members voted to approve the Bylaws revision and the 2022 Annual Meeting Minutes.
Watch our Annual Meeting video for the full update. Thank you for your SECO Energy membership.
Sincerely,
Curtis Wynn
Chief Executive Officer
Right Tree, Right Place: a Message from District 7 Trustee Joseph Kusiak
Trees planted in the right place can help you reduce your energy consumption. According to the Department of Energy (DOE) (www.Energy.gov), trees planted around homes and buildings can reduce energy consumption for HVAC by 25%.
The DOE’s computer models predict planting only three trees in the right place can reduce a household’s energy costs by as much as $250 annually. Trees planted to the south, southwest or west side of structures lowers cooling costs in the summer. Plant trees to the north and west to block fall and winter winds.
When planting trees, maintain a clear zone of 15 feet on each side of an overhead power line. Trees growing too close to power lines can cause sparks, fires, power outages and shock hazards. Consider the tree’s mature height before planting. Trees that grow to a mature height of 40 feet or higher should be planted at least 50 feet away from power lines. Small trees or shrubs that will not exceed 25 feet are best planted closer to lines but outside the clear zone.
Practice safe digging – call 811 before you dig. 811 is a free service that locates underground utility lines. In Florida, call 811 – it’s the law.
Spring Energy Efficiency Tips: A Message from Board of Trustees Vice President and District 1 Trustee Scott Boyatt
The sun is out, and temperatures are on the rise. Add energy-efficiency items to your to-do list. Use these spring energy-efficiency tips and ideas to reduce your energy consumption and lower your bill.
- Invest in a programmable thermostat. Per the Department of Energy, use the thermostat’s pre-programmed settings to save as much as 10% on cooling and heating costs yearly.
- During the warmer months, set the thermostat no lower than 78 degrees.
- Use cold water when possible.
- Fans cool people, not rooms.
- Turn off lights that are not in use.
- Replace older lightbulbs with LEDs.
- Make the most of natural light.
- Wash a whole load of laundry – a half load uses the same amount of energy – and wash in cold water.
- Unplug items such as TVs, computers, printers and phone chargers – these all use small amounts of energy when not in use. Invest in power strips.
- Grill outside or use small appliances such as crock pots, air fryers or toaster ovens.
Complete SECO Energy’s Home Energy Assessment for an online home energy audit and Energy Estimator for energy-efficiency solutions tailored to your home and lifestyle. Visit SECOEnergy.com > Energy Solutions.
SECO Energy Foundation
Helping people in need and reducing costs are critical in today’s economic environment. Our ability to help disadvantaged members, reduce our carbon footprint and lower costs for all members will be impacted by the new Foundation’s mission which is to fund grants for bill payment assistance, energy-related projects, educational STEM projects, scholarships, Veterans initiatives, public safety programs, environmental projects, and health and human services initiatives.
Local United Ways and social service agencies that receive grant dollars approved by the Foundation Board of Directors manage the funds for bill payment assistance. These agencies assess need and decide which members receive bill payment assistance.
The SECO Energy Foundation is a nonprofit 501c3 entity funded largely through SECO’s electric bill round-up program. It can be supplemented by grants the Foundation applies for through other private and federal funding programs that align with the Foundation’s goals. Participating members’ extra pennies are donated to the Foundation to make a difference in members’ lives across the communities served by SECO Energy.
To learn more about the Foundation or update your enrollment status, visit SECOEnergy.com/Foundation.
Customer Charge Increase Effective May 1
The economic downturn that began in 2020 with COVID has developed into runaway inflation. SECO Energy is not immune to the economic downturn, even as a not-for-profit utility. We continue to battle supply and labor shortages, and the price for every item we stock to build new infrastructure and maintain our over one-billion-dollar electric system has increased dramatically.
In a recent cost-of-service study presented to the Board of Trustees in the February meeting, these rising fixed costs were formalized, and a customer charge increase is needed.
Effective on bills calculated after May 1, the monthly customer charge increases from $1 per day (roughly $30 per month) to $34.50 per billing cycle. SECO’s rates remain very competitive compared to investor-owned and municipal utilities in our area, across the state and nationwide.
SECO Energy’s 2022 Capital Budget was $76,520,000 but necessarily increased to $119,795,800 to cover these rising costs in 2023. Costs to members must increase accordingly.
The customer charge is the line-item fee on monthly billing statements that collects for the fixed costs of providing service.
Learn more about the customer charge increase from our CEO in the Annual Meeting video at SECOEnergy.com or YouTube.
Read the full April 2023 SECO News online.
As a family unit every corporate entity we deal with to survive has suffered an economic downturn and have passed along their costs.
Homeowners insurance (over 100% increase) auto insurance, water and utilities, food and necessities, cable TV, phone service,
gasoline and vehicle maintenance, credit card interest. The list goes on and on.
As an individual homeowner who has worked over 50 years to support my family, I have no leverage to recoup my costs in my
personal economic downturn trying to pay for everyone else’s economic downturn. The major corporation I work for has chosen to
give everyone a 2% pay increase across the board for 2023. A mere pennies on the dollar . A one-day additional pay may buy you
a cup of coffee.
It will never end. Maybe we will all have to apply for payment assistance.
Unfortunately, even as a not-for-profit utility, SECO Energy is not immune to rising costs, runaway inflation and the economic downturn. For members who are seeking financial assistance, there are resources available. They can contact http://www.211.org or find additional social service agencies near their location by using our interactive Find Bill Payment Help Map: https://secoenergy.com/find-bill-payment-help/.
Yep! Just keep squeezing the consumer! They don’t care if you can afford it or not! Stop all unnecessary spending! It is all you can do!
Robert,
As a not-for-profit electric distribution cooperative, SECO Energy does not retain a profit from its ordinary business. Revenues in excess of expenses are returned to members in the form of Capital Credits yearly in November. You may wish to review one example in the most recent (May) “SECO News” and notice the article on the POWER COST ADJUSTMENT (PCA) reduction now in effect.
A look at “electric rates” versus “electric usage” seems to be a fair place to start – the price for energy has not increased by 40%. Your energy usage may have during certain weather patterns. In some areas, temperatures dropped into the low 20s for multiple days. Weather that is out of normal range – weather extremely cold or hot – will cause higher electric bills.
It is unfortunate that members experience fluctuations in electricity costs, but SECO Energy does its best to mitigate the severity of increases and react quickly to decreases. Material costs have escalated dramatically since 2020 as Mr. Wynn stated in the 2023 Annual Meeting video.
You may wish to review one example in the most recent (May) “SECO News” and notice the article on the POWER COST ADJUSTMENT (PCA) reduction now in effect.
This is insane. I posted some comments and Seco apparently deleted them. I guess that’s the new cancel culture. If they don’t agree with you they cancel you. I see all the other companies raised their rates but not near as much as Seco. Duke was only half as much. This is nothing but pure greed. I’m so tired of all these companies using covit snd inflation to rip the consumer off. Who do we pass our rising costs to? I liked your article and if more people spoke up things may be different. If more people don’t speak up before long we may not be able to afford to turn the lights on. It will never stop.
Mr. Jacim,
We appreciate your concern over the cost of electricity. We assure you that your comments were NOT being censored. Posts are moderated for sensitive/personal information and a moderator is not available on a constant basis to reply in real-time.
As a not-for-profit electric distribution cooperative, SECO Energy does not retain a profit from its ordinary business. Revenues in excess of expenses are returned to members in the form of Capital Credits yearly in November. You may wish to review one example in the most recent (May) “SECO News” and notice the article on the POWER COST ADJUSTMENT (PCA) reduction now in effect.
It is unfortunate that our members experience fluctuations in electricity costs, but SECO Energy does its best to mitigate the severity of increases and react quickly to decreases. Our material costs have escalated dramatically since 2020 as Mr. Wynn stated in the 2023 Annual Meeting video.
As for the financial motivations of SECO Energy, the cooperative structure of this company is a fundamental part of what makes SECO different from investor-owned utilities, which are profit-driven corporations. Our focus is on service, and to provide reliable and innovative energy services to our members and communities.
What happened to “HOT BUCKS’.
Thank you for your inquiry, “Hot Bucks” was once a credit for the Power Cost Adjustment (PCA). However, this line item has changed its name on your bill to more accurately reflect and is listed as Power Cost Adj. This credit is now a charge of $0.015000 per kilowatt. The credit was removed as of October 1, 2022.
Power Cost Adjustment (PCA) – The PCA provides SECO with a factor to accurately bill the member for fluctuating cost of wholesale power. When power costs are high, the PCA is typically a charge. When power costs are low, the PCA is typically a credit. Since fuel charges can fluctuate, industry regulators allow the power costs to be passed through to the customer. SECO does not keep the revenue from the PCA when it is a charge on the bill. The money generated from it goes directly back to Seminole Electric to pay for things relating to the cost of purchasing fuels like coal and natural gas. SECO members share in this adjustment, whether it is a credit or an expense, as they do the other benefits and costs associated with providing electric service. The PCA is calculated per kilowatt hour used.
A 15% increase is more than the inflation rate. How can you justify an increase of this amount?
Our CEO Curtis Wynn speaks extensively about rising costs in our 2023 Annual Meeting. If you missed the Meeting, you can watch the video here: https://secoenergy.com/annual-meeting-live/.
We’ve necessarily increased our Capital Budget to keep pace with increased costs. Since 2020, the cost for transformers has risen over 44%, pole-mount transformers cost has risen over 35% and conduit has increased over 200%. It is more expensive to do business today than just a year ago. Fixed costs are rising and as stated in SECO News, a customer charge increase was necessary to keep up with rising costs.
They don’t have to! My electric rates average about 40% higher than last year and now they are raising them again! The way to fight back is stop spending as much as possible! Make the entire system pay through loss of revenue and low sales!
This increase is much higher than the rate of inflation. It is also projected that inflation will be down this year while seco sees a 15% increase?? Does anybody think they’ll lower the rates later. I don’t think so. Not happy!
Watch our Annual Meeting video to learn more about the increasing costs of equipment needed to operate our not-for-profit electric cooperative: https://secoenergy.com/annual-meeting-live/.
When costs decrease, we pass the savings on to members as a true cooperative should. SECO Energy also retires/returns Capital Credits yearly and you see the return on your billing statement in November. SECO members own a portion of the cooperative’s equity. Members’ energy purchases build patronage capital.
SECO Energy’s Capital Budget has increased to keep up with rising costs. Since 2020, the cost for transformers has risen over 44%, pole-mount transformers cost has risen over 35% and conduit has increased over 200%. It is more expensive to do business today than just a year ago. Fixed costs are rising and as stated in SECO News, a customer charge increase was necessary to keep up with rising costs.
Hold on! Under the dims, things are going to get much worse! Voting has consequences!
People barely scraping by but making too much for any assistance programs are the ones who are hit the hardest with this enormous increase. There are always EXCUSES for raising rates whether true in reality remains to be seen.
Dear SECO Member,
We appreciate your concern over the cost of electricity.
As a not-for-profit electric distribution cooperative, SECO Energy does not retain a profit from its ordinary business. Revenues in excess of expenses are returned to members in the form of Capital Credits yearly in November. You may wish to review one example in the most recent (May) “SECO News” and notice the article on the POWER COST ADJUSTMENT (PCA) reduction now in effect.
For members who are seeking financial assistance, there are resources available. They can contact http://www.211.org or find additional social service agencies near their location by using our interactive Find Bill Payment Help Map: https://secoenergy.com/find-bill-payment-help/.
How much increase did the CEO get????
There are lots of people here on fixed income such as Social Security maybe public assistance.
15% is alot of increase. It’s a slap in the face increase for those on fixed income.
So you’re raking in around $6 million dollors more a month by charging us average $30 more a month!!!!
Dear Monica,
Our focus is on service, and to provide reliable and innovative energy services to our members and communities. As a not-for-profit electric distribution cooperative, SECO Energy does not retain a profit from its ordinary business. Revenues in excess of expenses are returned to members in the form of Capital Credits yearly in November. You may wish to review one example in the most recent (May) “SECO News” and notice the article on the POWER COST ADJUSTMENT (PCA) reduction now in effect.
You people at seco work under the guise of transparency..
Why not cut 15% of the wages of your ceo and top staff,luncheons,junkets,etc & reduce the cost to us…
Feed the 🐖🐽 & all it wants is more,more,more…
energy is like govt…we work for you…how sad…
Tyson Foods Inc (TSN.N) will eliminate about 10% of corporate jobs and 15% of senior leadership…
Try this,instead of a 15% increase,get rid of junkets,luncheons,gifts & high salaries/payments to the board…
Dear SECO Energy Member,
The commitment to fiscal responsibility maintained by SECO Energy is strong. The cooperative structure of this company is a fundamental part of what makes SECO different from investor-owned utilities, which are profit-driven corporations. Our focus is on service, and to provide reliable and innovative energy services to our members and communities. As a not-for-profit electric distribution cooperative, SECO Energy does not retain a profit from its ordinary business. Revenues in excess of expenses are returned to members in the form of Capital Credits yearly in November. You may wish to review one example in the most recent (May) “SECO News” and notice the article on the POWER COST ADJUSTMENT (PCA) reduction now in effect.
A high level of talent is needed to manage the growth we are experiencing. The labor market, to a large extent, will guide the cost of such talent. Employees are compensated fairly to provide SECO the opportunity to hire and retain key talent.
How about reducing the high salary of management employees.
We get no say in any increase.
And do we really really need some many new vehicles every year. I seriously doubt it. You just keep spending money and raising rates because we can’t stop you . .
My comment is awaiting moderation. That means you are going to censor me. Why ask for comments if you won’t post them. Just more control is the reason.
Mr. Gosnell,
We appreciate your concern over the cost of electricity. We assure you that your comments were NOT being censored. Posts are moderated for sensitive/personal information and a moderator is not available on a constant basis to reply in real-time.
The commitment to fiscal responsibility maintained by SECO Energy is strong. As a cooperatively structured utility, we are fundamentally different than investor-owned utilities, which are profit-driven corporations. Our focus is on service, and to provide reliable and innovative energy services to our members and communities. Material costs have escalated dramatically since 2020 as Mr. Wynn stated in the 2023 Annual Meeting video.
A high level of talent is needed to manage the growth we are experiencing. The labor market, to a large extent, will guide the cost of such talent. Employees are compensated fairly to provide SECO the opportunity to hire and retain key talent.
Im sick and tired of all these corporations using Covit and and inflation to rip us consumers off to increase their profits. It’s pure robbery. Is there another supplier besides Seco that we could get our electric from? No. I could see a minor increase but to increase our bill this much is nothing but pure greed. Where do I go to pass these high costs onto? I’m 80 and retired. It’s time for people to start standing up for themselves. We don’t have to stand for everything they shove down out throats. I would like to know what the profit was for Seco for this past year. These big corporations rob us without a gun. It’s not right and has to be stopped already. There is strength in numbers. If we keep rolling over it will never stop until you can’t afford to turn the lights on.
I’m going to try this again. My last reply was apparently deleted by Seco. To raise costs this much is nothing but greed. All of the other companies raised their rates also but not near to this extent. This is absurd and out of line. I’m tired of all these companies using Covit and inflation as an excuse to raise our costs. I’m 80 and retired. Who do I pass my raising costs onto. No one. Do I have another supplier other than Seco to choose from? No. It’s time for people to take a stand and not rollover to everything they shove down our throats. Stand up before you can’t afford to turn you lights on because it’s not going to stop. Or you could buy a electric car and charge it in non peak hours to get a $7 discount on your bill. Ok I’ll go out to buy a $70000 electric vehicle. These people are so out of touch with people it never ceases to amaze me.
If you used ZERO electricity you now pay $38.91 per month for the privilege of being a SECO customer. I had to reverse-engineer to estimate a couple of the fees/taxes since the tax rate isn’t actually listed on the bill (another issue) – but bottom line, you pay taxes on the daily customer charge even though it isn’t a reflection of actual energy use. For 30 days: daily charge = 34.50 + $1.41 municipal tax + $2.06 Franchise Fee + $0.94 gross RCT TA = 38.41. The notion of using zero electricity isn’t just hypothetical – those of us with solar can easily net zero or less and still pay $40. We have to generate a lot more than that to offset and get the bill to zero because they pay less than 1:1 metering for the excess energy we send back to SECO, because it supposedly costs them money to take in the free energy we give them….and apparently the $40 a month we already automatically pay them for doing nothing doesn’t cover that. What a racket – and unfortunately since it is a monopoly, we the consumer have no choice.
Lauren Reed as a member who has chosen to invest in solar energy, you are considered a small-scale wholesale provider. SECO Energy compensates small-scale providers for excess generation with the same rate we pay to our wholesale provider. The rate is approved by the FPSC and is not hidden nor undisclosed to members who choose to invest in solar. I’m sorry if you misunderstood or were not informed before signing a contract. Solar members also do not share in the running of the cooperative, the price for poles, meters, daily operations, and other equipment. The window for solar production is 9 a.m. to 3 p.m., which is outside of SECO’s peak demand window that occurs between 3 p.m. and 7 p.m. But there is good news, if you read May SECO News, we are reducing the Power Cost Adjustment (PCA) to zero which actually lowers the cost of 1,000 kWh (an industry standard measurement) by $9: https://secoenergy.com/seco-news-may-2023/. Lowering the cost of the PCA will increase the buyback for your solar excess too. Contact our Solar department if you have questions.