Current Karnes Electric Cooperative rates for electric service have not increased since 2009. However, due to rising overall operating costs, the cooperative must now implement rate adjustments. We have worked hard over the years to manage our expenses carefully so we can keep your costs as low as possible and very competitive with statewide averages.

If you have any questions or would like to talk through the changes, please don’t hesitate to call us at 888-807-3952. We also invite you to attend our upcoming public meetings to learn more and share your thoughts. Details on dates on dates and locations are listed below. View our January issue of Texas Co-op magazine here.

Notice of Rate Changes to Karnes Electric Cooperative Members

Notice is hereby given that Karnes Electric Cooperative, Inc. (the “Cooperative”) intends to change rates for electric service. Pursuant to Section 41.061 of the Texas Utilities Code, the Cooperative has adopted a resolution approving the rate changes. The rate changes will be applied to usage shown on bills issued on or after March 31, 2026.

The approved rate changes are anticipated to increase the Cooperative’s revenues by 8.13% over adjusted test year 2024 revenues. The approved rate changes by rate schedule are listed in the table below.

Calculator:

Members can enter their Monthly Energy Usage (kWh) into the calculator to view their new estimated bill amount. These amounts are based on the December Bill Power Cost Recovery Factor (PCRF) of -0.0077204.Members can also choose from the preset monthly kWh usage options to view estimated bill amounts.

Why is KEC increasing rates?

• • The last rate increase was in 2009. Since then, inflation and rising costs in the electric industry have put pressure on the cooperative’s operations.
  • Major drivers of this change include

-Inflation Pressure impacting overall costs.
-Increased industry costs such as materials and equipment.
-Investments in electric infrastructure to improve reliability.

• A third-party consultant, Enervision conducted a Cost of Service Study to ensure the rate adjustment is fair and necessary.

What is the overall rate increase?

The approved rate changes are anticipated to increase the Cooperative’s revenues by 8.13% over the adjusted test year 2024 revenues.

When will the new rates take effect?

The new rates will apply to usage on bills issued on or after March 31, 2026.

What are the changes?

TABLE

How were the rates determined?

KEC hired Enervision, a third-party consultant, to conduct a Cost of Service Study and review the rate structure. This ensures rates are aligned with costs to serve members fairly.

Will there be an opportunity to learn more or discuss the changes?

Yes! Townhall meetings will be held in each office to discuss the changes. Members are encouraged to attend and ask questions.

February 3, 2025	5:30pm-6:30pm	Karnes City Headquarters
February 4, 2025	5:30pm-6:30pm	Pleasanton Member Service Center

What steps is KEC taking before the new rates are implemented?

KEC will

• Notify all members
• Hold Townhall meetings
• Update Tariffs
• Set up and test the new rates in the billing system to ensure accuracy.

Why does the Cooperative need to adjust rates now?

KEC aims to continue providing reliable service despite:

• Increased costs driven by inflation
• Industry-wide rises in operational expenses
• Rising labor costs to maintain service standards

What should members expect to see on their bills?

Bills issued after March 29, 2026 will reflect the new rates.

How can members manage their energy costs?

KEC offers tips for reducing energy usage and managing costs, such as:

• Energy efficiency practices.
• Tools to monitor usage in SmartHub.
• Offer payment plans and arrangements if needed.

How will KEC rates compare to other utilities in the area and around the state?

Although we are adjusting our rates, we will remain competitive and offer some of the lowest rates when compared to similar utilities in the area and the state.