Cullman Electric Cooperative approved for half-cent rate increase starting in April
Cullman Electric Cooperative has received approval from the Tennessee Valley Authority (TVA) to implement a rate increase. Beginning April 1, 2026, the energy charge for all residential consumers will go up approximately one-half cent per kilowatt hour. In addition, residential accounts with a standard, 200-amp meter will have a $1 increase in the monthly customer charge. For the small percentage of members with a larger home that requires a 400-amp or greater service, the monthly customer charge will increase $3. The total impact on an average residential consumer’s bill will be $6 to $7 per month.
“Many people in our community are facing challenging times, and no one wants to see rising electric bills,” said Robert Tidwell, Cullman Electric’s board chairman. “We recognize our responsibility to work to keep bills as low as possible, and the co-op works hard to manage costs it can control, before we ever ask members to pay more.”
Cullman Electric CEO Tim Culpepper said the co-op is focused on being financially responsible without sacrificing the level of service its members expect and deserve.
“Our members count on us every day for the energy they need,” Culpepper said. “Our cost for almost everything has continued to go up. As our system grows, so does our responsibility to deliver reliable power. Cullman Electric has more than 49,000 meters and 3,600 miles of power lines, and our job is to make sure we have an electrical system that can keep up with the growing demand and cover our costs. This decision was a tough choice. We could raise rates a small amount now or wait and have a much larger rate increase later.”
Cullman Electric offers a range of programs to help members manage their monthly bill, including UsageTracker to monitor how much electricity is being used in your home each day, and SmartPAY pre-paid electrical service. Levelized billing is a budget-friendly option for members who qualify to receive a monthly bill that is averaged over the past 12 months.
“Electric co-ops are not-for-profit, member organizations, which means we’re owned and governed by the people we serve,” Culpepper said. “I want our members to know we are doing everything we can so you can feel confident that you will have the energy you need, whenever and wherever you need it.”
The customer charge is a fixed fee that covers the costs of providing electricity (poles, wire, transformers). The energy charge, also known as the kilowatt hour rate, is a variable fee that differs monthly for each consumer based on the amount of electricity used.
The cost of providing service to a larger home that uses a 400-amp or greater service is more than the cost of serving most homes that have a standard, 200-amp service. The difference in the monthly customer charge ensures that members with a more expensive service pay their fair share regardless of how much electricity they use.
Cullman Electric Cooperative is a member-owned cooperative serving more than 38,000 member accounts in Cullman, Winston, Lawrence and Morgan counties.