In conjunction with Connected Technologies LLC, LREMC began to offer Bluewave fiber connections just under a decade ago to meet our rural communities' needs.Īlso, LREMC has made our existing electric utility poles available to other communication providers through pole attachments agreements to hasten the deployment of broadband access across our service area. Rural communities have long-awaited high-speed connections because for-profit cable providers have been unwilling to invest in broadband infrastructure in sparsely populated areas.ĭespite that challenge, electric cooperatives for years have supported efforts to close the digital divide by exploring local solutions and facilitating the expansion of access to broadband providers to utility poles quickly and at a fair rate. More: Our View: Fayetteville should be cautious over private company's big-bucks utilities offer It is critical that rural broadband expand quickly, efficiently and fairly - and that as grant funding creates a new market for broadband providers in our communities, we join together to reject efforts by for-profit special interests that would shift costs to North Carolina's rural consumers. “We anticipate that we’ll have the results of that back in April so that we should know what we need to do permanently in about three or four months,” White said.While the pandemic has shone a bright light on the need for expanded rural broadband, the issue is something that we in rural areas have prioritized for many years.Īs the President and CEO of Lumbee River EMC (LREMC), an electric cooperative serving rural members in Robeson, Scotland, Hoke, Moore and Cumberland Counties, I am grateful that more than $140 million in state and federal funding has recently been awarded to connect unserved and underserved rural residents in our state. The results from the study of the temporary rate increase will determine the permanent adjustment. The cooperative was able to project that a 6.5% was needed to maintain its financial position, White said. “This also ensures we are able to have the revenues required to maintain the cooperative’s financial health during this interim,” Dietrich said in the statement. When a cost adjustment is needed, a temporary adjustment allows the cooperative and its rate analyst time to evaluate and determine the correct amount of permanent rate increase needed, according to Dietrich. Lumbee River EMC is required by lending institutions and the USDA’s Rural Utility Services to maintain certain financial ratios, which are the performance indicators used by those institutions to measure the companies’ financial strength. “We’re going to have to do something to have more revenue to maintain the financial ratio that we have to have,” he said. White said the corporation no longer has the means to “belt tighten.” “Of course that adds to the overall cost to continue to provide services.” “Since 2014 to now, we’ve continued to add assets to the corporation,” White said. The construction of two new offices, in Pembroke and in Hoke County, and several substations also plays a role in the adjustment while giving the company key assets. Since then, there has been an 8% inflation increase in rates and the company has picked up a $23 million bill as part of Duke Energy’s coal ash cleanup bill, White said. The last rate adjustment the Lumber River EMC implemented was in 2014. So a household with a $150 bill for kilowatt usage currently would pay $159.75 under the new rate. “There’s a facilities charge of $27.65 for our residential members and that $27.65 is not impacted by the 6.5%,” White said. The rate increase will be applied to the total monthly kilowatt per hour usage but not the total bill, said Walter White, vice president of LREMC Corporate Services. You can be confident that we strive to improve the quality of life for our members and our communities while keeping electric rates as low as possible.”
“I maintain my promise that Lumbee River EMC will do our best to always to make decisions with the impact to our members in mind.
Too low and we could jeopardize our financial strength. If our rates are too high, then we may collect more money than necessary from our members. The utility is expected to decide on a permanent rate adjustment in a few months.ĬEO Carmen Dietrich released a statement Friday which reads in part, “Our goal is to always set our rates so that the right balance of margins is maintained - not too high and not too low. There are 18,167 customers in Robeson County. The adjusted rate will affect all 54,450 of its customers in Robeson, Scotland, Hoke and Cumberland counties. PEMBROKE - The Lumbee River Electric Membership Corporation will implement a 6.5% temporary rate increase adjustment for its members effective Saturday.
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