For members who seasonally disconnect their service to avoid paying the monthly access charge, a new idle service fee will take effect this fall. The change will help ensure that each member pays their portion of the cost to maintain and operate the distribution infrastructure necessary to deliver electricity to their home, business, farm, or agricultural building.
Seasonal disconnections are most commonly done for agricultural buildings such as grain bins, where power may only be used for a few weeks or months each year. However, when a member chooses to temporarily disconnect service, the cost of maintaining the facilities for their service doesn’t just disappear. Instead, active members are required to make up the difference.
To help address the issue, the Midland Power Cooperative board of directors approved the new idle service fee in June.
Beginning this fall, members who elect to disconnect their service for more than 60 days with the intention of reconnecting service within 24 months will be subject to the new fee. For a single-phase service, the cost will be $20 per month. For a 3-phase service, the cost will be $42.50 per month.
As an electric cooperative, Midland Power invests heavily in building, maintaining, and operating our distribution system. To help offset these costs, each member pays an access fee, a fixed charge that remains the same whether a member uses any kilowatt-hours or not. A member’s access charge helps pay for their portion of the costs associated with delivering electricity to their point of service.
Members who elect to disconnect service without paying the idle service fee or who maintain idle service status for more than 24 months are at risk of having their service declared canceled. This could result in the removal of the co-op’s electric facilities, including the poles, wire, and transformer feeding the service.
The member would also become subject to “new service” fees or any associated charges should they decide to reconnect in the future. A member who elects to rebuild service at their location after facilities have been removed will be required to pay the cost of reinstallation of the necessary facilities.
For more information on the new fee, please call us at (800) 833-8876.