2025 Rate Adjustment

San Patricio Electric Cooperative is committed to providing reliable power and quality customer service at the lowest possible price. We have worked hard to control costs and haven’t increased our rates since 2006.

As a not-for-profit electric cooperative, we operate at cost and raise charges only when necessary to improve and maintain electric service. 

We've had a long track record -- 19 years --without increasing our rates. We understand that our members may have questions about why things are changing now. We hope you'll find the answers in the FAQ below. If you have additional questions, please contact us at 361-364-2220.

 

Rate Adjustment Frequently Asked Questions

As a nonprofit cooperative, SPEC sets our rates as close as possible to the cost of service. We have not increased rates since 2006. Since then, inflation has driven our costs higher than ever and put pressure on our operations.

We now need to implement a rate increase to ensure we can continue to provide the reliable electric service our members depend on.

The example below shows just how much materials prices have increased for your co-op since 2020.

 

Graphic depicted price increases for power line materials

We understand that our members are also feeling cost pressures in many aspects of their lives. We care about how this rate increase impacts our members, so we planned to spread out the increase over two phases. As we plan for the cooperative’s future costs, we believe our members should be able to plan for future costs too.

In the first phase, the average residential bill will see a total increase of $7.35 per month, or approximately 24 cents per day. This adjustment includes a $2.50 increase to the Customer Charge and a $0.00375 per kWh increae to the Distribution Energy Charge.

 

Rate Class

Phase 1 (effective May 1, 2025)

Customer Charge Increase

Distribution Energy Increase

New Customer Charge

New Distribution Energy Rate

Residential

$2.50

0.00375 per kWh

$24.00

$0.03875

Residential Seasonal

$2.50

0.00375 per kWh

$24.00

$0.06225

Small Commercial

$2.50

0.00375 per kWh

$24.00

$0.03875

Three Phase Services

$2.50

0.00375 per kWh

$27.50

$0.06225

 

 

 

 

 

 

Customer Charge Increase

Demand Charge Increase

New Customer Charge

New Demand Charge

Irrigation Bundled

$7.50

$1.15 per kW

$82.50

7.55 per kW

Irrigation Coincident Peak

$7.50

$0.55 per kW

$107.50

$5.05 per kW

Irrigation Time of Day

$7.50

$0.55 per kW

$107.50

$5.05 per kW

 

In the second phase, residential bills will increase by $2.50 per month, or approximately 8 cents per day.

Rate Class

Phase 2 (effective May 1, 2026)

Customer Charge Increase

Distribution Energy Increase

New Customer Charge

Distribution Energy Rate

Residential

$2.50

None

$26.50

$0.38750

Residential Seasonal

$2.50

None

$26.50

$0.06225

Small Commercial

$2.50

None

$26.50

$0.38750

Three Phase Services

$2.50

None

$30.00

$0.62250

 

 

 

 

 

 

Customer Charge Increase

Demand Charge Increase

New Customer Charge

Demand Charge

Irrigation Bundled

$7.50

$1.15 per kW

$90.00

$8.70 per kW

Irrigation Coincident Peak

$7.50

$0.55 per kW

$115.00

$5.60

Irrigation Time of Day

$7.50

$0.55 per kW

$115.00

$5.60

 

 

The change will appear on the bill you receive at the end of May 2025 for Phase 1.

The Phase 2 change will be effective on the bill you receive at the end of May 2026.

SPEC hired a third-party consultant, C. H. Guernsey, to conduct a Cost-of-Service Study and review our rate structure. Following that analysis, the cooperative determined it was necessary to increase rates for several rate classes which were underperforming compared to the others.  These rate classes are not generating the rates of return needed to meet our current and future cost of service.

We are a not-for-profit, member-owned cooperative. We exist to serve our members with reliable, affordable power. Any margins (profits) we receive are invested in the electric system or refunded to you, the member-owner of SPEC, in the form of capital credits.

SPEC’s bills are split into two sections: SPEC Distribution Charges and STEC Power Supplier Charges.

This rate change will affect SPEC’s Distribution Charges only. The customer charge and electric use charge in this portion of your bill exist to cover the cost of bringing power to your meter, including such things as electrical wire, transformers, poles, maintenance, co-op employees and administrative costs.

 

The STEC Power Supplier Charges go to South Texas Electric Cooperative, which generates the power you use in your home. SPEC purchases electricity from STEC at wholesale prices and passes those costs through at no markup.

 

We separate these charges out on our bill so our members get transparency on where their dollars are going.

SPEC offers tips and tools to help reduce your energy usage and manage costs, such as:

As a nonprofit cooperative, SPEC sets our rates as close as possible to the cost of service. Although we are adjusting our rates, we remain competitive with other utilities in the area and state.

 

Yes. A meeting to discuss the proposed rate changes will be held at the office of San Patricio Electric Cooperative, Inc. at 402 East Sinton Street, Sinton, Texas on April 15, at 5:30 p.m.