GREENFIELD — NineStar Connect expects electric rates to go up sometime in the next year as it deals with increasing wholesale costs.
NineStar made the announcement at its 66th annual meeting and celebration on Friday night. Members of the co-op — who are also its customers — packed Greenfield-Central High School’s gymnasium for a complimentary meal and discussions about its services and finances. NineStar also elected board members, awarded scholarships to area high school students and looked back on its philanthropic activities over the past year.
Michael Burrow, NineStar Connect president and CEO, said the co-op is going to have an independent third-party consultant conduct a cost-of-service and rate study later this year. It will likely reflect a need for a small increase in electric rates sometime over the next six to 12 months, he added.
Burrow pointed to the growing impact of increasing wholesale electric demand charges, which are applied during on-peak hours to maintain the extra capacity needed to meet increased energy consumption.
Since 2010, the year before Hancock Telecom and Central Indiana Power merged cooperatives to form NineStar Connect, electric load has risen by almost 9 percent while wholesale power demand charges have gone up 92 percent, Burrow said. In 2010, 29 percent of the electric utility’s bill from its wholesale power provider was for demand charges while last year it was nearly 50 percent.
Most of NineStar Connect’s electric load profile is made up of residential customers, resulting in on-peak hours — when wholesale power is most expensive — of between 4 and 8 p.m. Monday through Friday, Burrow said.
Burrow encouraged electric customers to consider NineStar Connect’s time-of-use rate program, which monitors when participants’ electric usage occurs and applies different rates based on whether usage occurs during on-peak or off-peak hours. If customers don’t tend to use much electricity during on-peak hours, the program could allow them to save money compared to traditional billing, which charges customers a uniform rate regardless of when they use electricity.
Burrow said NineStar Connect is also working with its wholesale power provider, Wabash Valley Power Association, to try to find a resolution to the impact wholesale power demand charges are having. Burrow said he is optimistic the issue can be resolved.
“They’re interested in working with us and helping us figure out a way we can be able to shift this load,” Burrow said.
Scott Hiatt, chief financial officer for NineStar, reported that in 2018, assets grew about $6 million, revenues rose by $4.6 million and the year finished with a net income of $8.1 million — comparable to 2017. The co-op also returned over $1 million to members last year, Hiatt said.
NineStar Connect awarded 15 $1,000 scholarships to 2018-19 graduating high school students whose parents are customers in good standing with the co-op, Hiatt continued. More than 80 students submitted applications from 13 schools.
Through the NineStar Community Trust Operation Round-Up Program, 80 percent of co-op members elect to round up their bills to the nearest dollar and contribute the difference to grant awards. Dick Creger, who chairs the program, said Friday that $88,000 was distributed to 27 organizations in 2018, contributing to a total of almost $1.4 million since the program started in 1994.
“The pennies that you provide each month come together to make a big difference in our community,” Creger said.
NineStar offers an array of utilities — including electricity, internet service, cable television and water/sewer, in parts of Hancock, Hamilton, Henry, Madison, Marion, Rush and Shelby counties. It has approximately 14,000 customers.
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These candidates were elected to seats on the NineStar Connect board of directors at the annual meeting:
At large C: Philip Hayes
At large D: Ronnie Mohr
District 2: Mark Evans
District 6: Joe Paxton
District 10: Shelly Kleiman
Source: NineStar Connect
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NineStar Connect awarded $1,000 scholarships to these Hancock County high school students at its annual meeting.
James Cohee, Mt. Vernon High School; parent: James Cohee
Mariam Elassal, Greenfield-Central High School; parent: Dalia Elassal
Ethan Elsbury, Greenfield-Central High School; parents: Gary and Molly Elsbury
Brianna Franke, Mt. Vernon High School; parents: Bryston and Denise Franke
Grant Hess, Mt. Vernon High School; parent: Ruth Hess
Emme Longman, Mt. Vernon High School; parents: Larry and Jennifer Longman
Canyen Palmer, Greenfield-Central High School; parents: Bill and Wendi Palmer
Morgan Seeman, Mt. Vernon High School; parents: Amy Friedrich-Seeman and Daniel Seeman
Leah Seib, New Palestine High School; parents: Harold and Heather Seib
Zachary Sickle, Eastern Hancock High School; parents: Gary and Janet Sickle
Jenna Smith, Eastern Hancock High School; parents: Larry and Dawn Smith
Gillian Ward, Mt. Vernon High School; parent: Karen Ward
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