October 2011

Member Rate Increase Necessary to Meet Increased Costs

Dear Member:

Last month on this back page, I informed you that the Bonneville Power Administration (BPA) announced that it will increase wholesale power rates by an average of 7.8% beginning October 1, 2011. At that time we were unsure how the wholesale rate increase from BPA would affect the rate to you, the members of Midstate Electric.

I also reported last month that the Board of Directors was conducting a rate study. With the increased wholesale power rates, the rising cost of equipment, material, fuel, insurance and other expenses, the study determined that it is necessary for Midstate Electric to impose a consumer rate increase to meet the increased costs. Members will see a general rate increase of approximately 4.5% effective November 1.  

The percentage of increase may vary from month to month depending on kWh consumption. The effect on the average residential member, using 1,200 kWhs, is an additional $4.00 per month.

Rate stability has always been a priority at Midstate Electric. We are proud that we have only had to make two adjustments to the rates in twenty years. Those rate increases experienced by our members were also driven by substantial increases in BPA’s power rates to the cooperative.

The rate stability you have enjoyed did not happen by accident. There have only been two Midstate Electric rate increases since 1991 because of the prudent business practices and careful resource management we had, and continue to have in place. Over that twenty year period, along with changes in the cost of wholesale power, internal cost increases for administration, capital improvements and material costs, your Board of Directors elected to absorb many of those increases rather than passing them on.

We realize that any increase to your power cost can cause a hardship. We are continuing to provide conservation programs that can help. Rebates are offered for heat pumps, duct sealing, water heaters and weatherization measures. A new program—PowerView—accessed through MyUsage.com, is an energy-awareness/monitoring service offered by Midstate Electric for members who want to take a more active role in monitoring their electric use. For more information about these programs, call Marketing at 541-536-2126.

October is Co-op Month. See Page 8 for information about our member contests.

 

Bill A. Kopacz

General Manager

 

 

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