Whetstone Valley Electric Cooperative finalized its 2017 budget and announced rates will go up February 1. “In order to meet our obligations and maintain... Whetstone Valley Electric Coop Rates to Rise February 1

Whetstone Valley Electric Cooperative finalized its 2017 budget and announced rates will go up February 1. “In order to meet our obligations and maintain financial stability, we are planning rate increases in all of our rate classes,” stated WVEC General Manager Dave Page. “The changes are calculated to produce an increase of about 8% in revenue over our present rates.”

According to Page, several factors affected the cooperative’s revenue requirement. “In 2016, Basin Electric Power Cooperative implemented a mid-year rate increase. The impact of this will be experienced in 2017. WVEC’s budgeted cost for wholesale power for 2017 is 7.8 percent over that of 2016. Wholesale power is about 60 percent of total operating costs and will continue to be the major factor driving our rates.”

Page also said in order to improve the reliability of the cooperative’s distribution system, WVEC plans to invest about $1.4 million in their power lines in 2017. “This will produce higher depreciation costs and an increase in interest expense.”

Page also clarified sections of members’ electric bills. “The components reported on your electric bill depend on the type of services you have. A simple way to think about facility charges is those are meant to recover the cost of having the electric system in place. The system needs to be ready to go when you turn on the switch, and even if you choose not to turn on the switch, it must be there.”

When looking at the energy charges, Page says the energy component is measured in kilowatt-hours (kWh) and represents the electrical energy consumed over a period of time. Demand is measured in kilowatts (kW) and represents the amount of energy required at one time. “When a large amount of energy is required at one time… a large amount of generating capacity must be readily available and wires large enough to carry the energy must be installed. Having the capacity and infrastructure in place to deliver high demand is costly and will often be charged as a separate billing component.”

Page emphasized the cooperative will continue to meet the challenges set forth by the directors. He said, “We strive to attain the highest level of safety for our employees and members, achieve greater efficiency in operations, increase our level of customer service, and strengthen our financial position.”

Staff Writer

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