The board of directors of Poudre Valley Rural Electric Association has approved a rate increase effective Jan. 1. The increase will average 3.9 percent, or $4.37 per month, for a typical residential consumer. Specific rate increases will vary based on individual electric usage across different rate classes.
The change in rates is a result of a 4.9 percent wholesale power rate increase from PVREA’s power provider, Tri-State Generation and Transmission Inc. Tri-State has also restructured wholesale rates, which results in a 1.2 percent increase to PVREA for a combined wholesale rate increase of 6.1 percent. This translates to increased costs of $4.2 million to PVREA in 2013. Wholesale power represents approximately 77 percent of the total PVREA expenses.
A public forum was held on Nov. 27 to hear input from PVREA members and other interested parties before the board made its decision.
“PVREA has taken many steps to reduce our controllable costs, improve efficiencies and negate the impact of rising expenses. As a result we have not asked for any additional revenue for these costs in 2013, nor have we since 2009. The rate increase for next year is due solely to the cost of wholesale power and not for any other expenses,” said CEO Brad Gaskill in a prepared statement announcing the decision. “The PVREA board, management staff and employee team work hard every day to control our costs and we remain committed to our primary focus of keeping electricity safe, reliable and affordable.”
For more information, go to www.pvrea.com.