The majority of utilities determine the amount of the facilities charge through a cost of service study. Each utility’s circumstances are different. The amount of a utility’s facilities charge can be affected by a number of factors, including the number of consumers the utility serves; the size of the utility’s service territory; the number of trees in the area served by the utility; the age of the utility’s system; and the utility’s growth in kWh sales. To help ensure long-term financial stability for the cooperative, the directors and management are working on a ten-year plan to bring the monthly facilities charge to the actual cost.
