Billing Date Change Effective June 2020
In an effort to conform to new GAAP (Generally Accepted Accounting Principles) standards that recently went into effect regarding revenue recognition, the Board of Directors and management of T.I.P. Rural Electric Cooperative have decided to change the billing dates which are currently the 20th to the 20th of each month (January 20th through February 20th usage, billed in March) to billing from the 1st to the last day of the month.
This transition will take place in May and June. What does this mean to you?
- The bill you receive at the beginning of May will be billed using the previous billing dates. (March 20th to April 20th)
- In mid-June, you will receive a bill for April 20th through May 31st usage (41 days) which will be due July 1st. To reflect the additional ten days in this billing period, the monthly facilities charge will be prorated. For example, rural residential customers will have a $40.00 facilities charge for this billing period and then return to the normal monthly facilities charge of $30.00. (This billing will begin to align the new billing dates.)
- After this transition, the billing dates will follow the calendar month and electric bills will be mailed out on or around the 10th of each month and will be due after 20 days on the 1st.
- If you are enrolled in the Automatic Withdrawal (ACH) program, your payment will still be withdrawn on the 18th of each month.
- If you have scheduled your payment with your bank, you may need to adjust the date it is processed.
This billing date change will enable the revenue to be recognized (or billed) for the same period the goods or services (kWhs) were used or rendered. Therefore, our monthly revenue will match the same period as our power costs and help eliminate large fluctuations in our ECA (energy cost adjustment) and line loss throughout the year.
To minimize the impact of the extra billing days on our members, your cooperative decided to implement this during the time of year when we see the lowest kilowatt hour consumption. We appreciate your patience during this transition. If you have any questions, please call our office during normal business hours.
Office Hours: Monday – Friday, 7:30 am – 4:00 pm Phone: 800-934-7976