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.
