Poudre Valley REA Board of Directors Approves Rate Increase for 2012
The Board of Directors of Poudre Valley Rural Electric Association, Inc. has approved a rate increase effective January 1, 2012. The average increase will be 4% across all rate classes. Specific rate increases will vary based on individual electric usage across different rate classes. The increase for a typical residential consumer using 900 kWh’s will be 3.2 percent, or $3.44 per month.
The increase is driven by a 4.8% increase in the cost of power from Poudre Valley REA’s wholesale power supplier, Tri-State Generation and Transmission Association, Inc. resulting in an additional $3,800,000 cost to PVREA in 2012. Wholesale power represents approximately 83 percent of the total PVREA operation and maintenance expenses.
The last time an increase in the cost of power was passed on to Poudre Valley REA consumers was January of 2009.
“Changing the rates is never an easy or an enjoyable thing to do especially in a difficult economy. The board and management staff have worked hard and made some tough decisions to hold our operating expenses in check during the past three years,” said CEO Brad Gaskill.
A public forum to was held on Tuesday, November 29, 2011 at the PVREA headquarters office to hear input and comments from PVREA members and other interested parties. Several dozen people were in attendance and made comments that were considered by the board before they made their decision. The board deliberated and voted on the rate modifications immediately after the forum.
The board also approved revisions to the association’s Rules and Regulations. A new rule and regulation pertaining to a proposed meter reading fee for the opt-out provision of association’s Automated Metering Infrastructure project was discussed. The opt-out provision was passed with no fee in 2012.
2012 Rates (PDF)
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