Of all the items on our bills, the Access Charge is the one we’re asked about the most. It’s a fixed monthly charge, no matter how much electricity you use. Understandably, that raises questions.
The basics
Simply put, the Access Charge covers the fixed cost of delivering electric service to your home or business.
Included in the Access Charge is the cost of the poles, wires, transformers, meters, trucks and other equipment that makes it possible to serve you—even if you don’t use a single kilowatt-hour of electricity.
Most essential utilities like water, internet and cable include a base charge. Electricity is no different—flipping a switch relies on a system that’s ready when you need it.
Why a fixed charge?
If all costs were tied to energy use, members who use very little electricity—such as hunting cabins and seasonal homes—wouldn’t pay their share toward the infrastructure they still rely on. Meanwhile, full-time residential members would carry more than their fair share.
Another challenge: energy use fluctuates with the weather but the cost to maintain the system doesn’t. In mild months, when usage drops, so does the amount of revenue collected through energy charges. But our expenses remain constant year-round.
The Access Charge provides a stable source of funding to keep your electric service dependable, no matter the season or how much energy you use.
Density matters
One of the factors that affects the Access Charge is member density—or how many meters are served per mile of power line.
Alabama Power serves more than 30 customers per mile of line. In contrast, Pioneer Electric serves less than 5 members per mile. That means fewer members share the cost of maintaining each mile of infrastructure, which increases the per-member cost to provide service.
Alabama Power also bills an Access Charge, but it’s hidden in the total calculation on customer bills.
The true cost of service
According to our 2025 cost of service study, the Access Charge should be around $90 per month to fully recover the cost of maintaining electric service for full-time residential members.
Rather than increasing the Access Charge to that level, Pioneer Electric recovers part of those fixed costs through the Energy Charge. This approach spreads the expense across the membership, making it less burdensome on individual members.
A commitment to transparency
Unlike other utilities, Pioneer Electric provides an itemized bill that breaks down what you’re paying for. That’s because we believe members deserve to see exactly where your money is going—and how you can control those costs. This reflects the cooperative difference. We answer to our members, not shareholders.
Next month, we’ll take a look at the Energy Charge—the part of your bill that reflects how much electricity you use.