How Rates Work
Alfalfa Electric Cooperative is committed to enhancing the quality of life for our member-owners in Alfalfa, Grant, Garfield, Major, and Woods counties located in Oklahoma, as well as Barber and Harper counties in Kansas.
1
Power Costs
These are the energy and capacity costs that Alfalfa Electric Cooperative pays to our wholesale power supplier, Western Farmers Electric Cooperative.
Energy costs
Energy costs cover the fuels used to generate electricity such as natural gas, coal, wind, and solar. When global fuel and material prices rise, the energy portion of wholesale power costs increases as well.
Capacity costs
Capacity costs are fixed expenses tied to having power plants available to meet demand, even when they aren’t running at full output. These costs include plant construction, maintenance, and compliance with environmental regulations that can affect generation capacity.
What Is a Kilowatt-Hour (kWh)?
Electricity use is measured in kilowatt-hours (kWh) the standard unit for energy.
1 kilowatt-hour equals 1,000 watt-hours.
For example:
A 100-watt light bulb running for 1 hour uses 1/10 of a kWh. If electricity costs 10¢ per kWh, that bulb costs 1¢ per hour to operate.
2
Operating Costs
Operating costs make up the smallest portion of your electric rate and they’re the only part AEC can directly influence. These include the day-to-day work of keeping your lights on:
- Building and maintaining power lines
- Power restoration after storms
- Communications and billing
- Member services and meter reading
- Administrative and employee expenses
- These are the practical costs of running your local cooperative.
3
Fixed Costs
Fixed costs are expenses the cooperative incurs regardless of energy sales. They include:
- Depreciation and amortization
- Property and gross receipts taxes
- Interest on long-term debt
- Community sponsorships and charitable contributions
- While these costs don’t fluctuate with usage, they’re essential to maintaining financial health and long-term stability.
Front of the Bill
Total Due
This section shows the full amount you owe for electric service this billing period. It includes any past-due balance, payments received, and all current charges. The Total Due is the amount that must be paid by the due date to keep your account in good standing. If payment is not received by the due date, a late fee may apply, and service could be subject to disconnection.
Account Overview
This section provides a summary of your electric service activity for the current billing period. It includes your account number, service address, billing dates, and a snapshot of charges and usage. You’ll see your previous balance, any payments received, new charges for electricity and services, and your current amount due. The overview also highlights your total kilowatt-hour (kWh) usage this period compared to last month and last year, giving you a quick look at energy trends in your home or business
Important Messages
This section provides updates, reminders, and special notices related to your electric service. Please review carefully, as it may include information about billing changes, rate adjustments, energy-saving programs, payment assistance, or service interruptions.
Current Service Detail
This section provides a breakdown of your electric service charges for the current billing period. It shows how your total amount due is calculated, including the cost of electricity you used and the charges for delivering power to your home or business. Taxes, fees, and any additional services are also itemized here for clarity.
Electric Usage History
This section tracks your electricity consumption over time so you can see trends in your energy use. It compares your current usage with past months and the same period last year. Monitoring this information can help you manage your energy costs and identify seasonal changes in your household or business usage.
Energy Use Comparison
This section helps you understand how your energy use stacks up against your past usage and the average consumption of similar homes in your area. It’s designed to give you insight into whether your household is using more or less energy than normal and highlight opportunities to save.
Payment Stub
Detach and return this portion with your payment. The payment stub ensures your account is credited quickly and accurately. It displays key account and billing details in a condensed format for easy reference.
Download SmartHub QR
Take control of your electric account anytime, anywhere. With the SmartHub app, you can view and pay your bill, monitor energy usage, and receive important alerts right from your phone or tablet.
Back of the Bill
Payment Options
If you have a past-due balance, we offer flexible payment arrangements to help you get back on track and avoid service interruption. This option allows you to pay your outstanding balance over time while keeping your account in good standing.
Account Changes
This section lists any recent updates or modifications made to your electric service account. Please review carefully to ensure all information is correct. If you did not request a change, contact our customer service team immediately.
Taxes & Fees
Gross Receipts Tax
Oklahoma electric cooperatives pay a 2% gross receipts tax on energy sold. A unique benefit of the cooperative model is that this tax goes directly back to local school districts based on the miles of electric line within each district.
Franchise Tax
Municipalities charge a franchise fee for the use of city streets and public rights-of-way to deliver electricity. AEC collects this as a pass-through charge on bills for members within city limits. Each municipality sets its own percentage.
At Alfalfa Electric Cooperative, transparency matters. We believe that understanding how rates work helps our members make informed decisions and see the true value of cooperative membership — where every dollar serves our community, not shareholders.