Gibson Electric Membership Corporation works very hard to provide reliable, affordable and safe electric service. When it comes to affordability, DENSITY is key. Gibson EMC has over 32,000 residential members and over 6,500 commercial members to whom we provide power. These members are spread over 3,529 miles of distribution line in a 12-county service area.
Gibson EMC and other cooperatives have a much lower member density than our neighboring municipal systems. Gibson EMC has an average of 11 members per mile of electric line as compared to area municipal systems that have an average of 37 members per mile. The cost of constructing and maintaining our physical electric system is shared among all of Gibson EMC’s members. For municipal systems with a higher density of customers per mile of line, there are more people to share the cost per mile.
Gibson EMC has a cost-of-service study conducted about every 5 years. This study is done to determine the true cost of providing services to a member. Based on our 2018 Cost-of-Service Study, the cost to serve a Gibson EMC residential member is $40.58 per month. This is the amount each residential member should pay to cover Gibson EMC’s distribution costs. It does not cover any wholesale power costs charged by TVA. Gibson EMC board members, through regulatory control by TVA, approve rate schedules to collect appropriate funds to accomplish the financial plan of Gibson EMC. Gibson EMC collects a service availability charge and a kilowatt-hour charge from residential members each month. The current service availability charge is $25.50 per month. The rest of the funds needed to operate are collected through a declining block rate kilowatt-hour charge. Those who use more energy help pay more of the distribution costs.
Here is a breakdown of how our rates are allocated: Gibson EMC pays TVA 76 cents of every dollar it collects for wholesale power costs. That leaves us 24 cents of each dollar for operations, maintenance, depreciation, interest and tax expenses. When comparing our rates to those of other neighboring electric cooperatives, Gibson EMC’s residential rate is average and our GSA1 rate is among the lowest. (See Residential Rate Chart / Business Rate Chart).
View Gibson EMC’s residential, commercial and industrial rates by visiting our website at www.gibsonemc.com or by obtaining a copy from our local member service centers.