How did we get here?
Over the years, the costs associated with maintaining SECO’s area lighting system have increased drastically. However, the fees charged for this service have not kept pace. A recent lighting cost-of-service study conducted in early 2024 revealed that SECO’s fees charged to HOAs recover only a small percentage of the actual cost associated with providing neighborhood area lighting services.
This multimillion-dollar deficit grows as more neighborhoods call on SECO to maintain their neighborhood lighting service. Over the last five (5) years, SECO added more than 9,000 area lighting structures to our system. With our region’s rapid growth of residential neighborhoods, we anticipate this trend to continue and possibly accelerate. To prevent other SECO members who do not receive neighborhood lighting service from paying this fast-growing deficit, a rate adjustment to the neighborhood area lighting class of service became necessary. Some key factors influencing the adjustment include:
- Rising Maintenance Costs (labor, tools, transportation, warehousing, and equipment)
- Rapid growth/Supply Chain shortages
- Mandated LED Integration
- Interest Rates
- Aging Infrastructure/Inflated replacement material cost
- Property taxes
We remain committed to working with residential and commercial developers to provide high-quality lighting solutions that align with their design standards while ensuring these assets’ ongoing maintenance and servicing.
