October 2009

Rate Increase in Effect

Dear Member:

In September, we mailed notification of consumer rate increases of approximately 9%. This increase, brought on by the announcement of a rate increase by Bonneville Power Administration (BPA), went into effect October 1, 2009. Our last rate increase in 2001 was also driven by a substantial increase in BPA's rates to the cooperative.

To help minimize the impact of the rate increase, conservation and energy efficiency are more important now than ever. We encourage your participation in our Conservation Rebate Program. The program is provided through the power contract we have with BPA. Conservation is important to BPA because the logistics of building new power plants—capital costs, fuel costs and environmental regulations—is formidable.

We have been providing the existing Conservation Rebate Program since October of 2006. During that time, Midstate Electric has paid more than $630,000 in rebates to members for the installation of energy efficient heat pumps, appliances, water heaters, lighting and weatherization. The energy efficient measures that were installed amount to savings of over 2.5 million kWh.

Besides the Conservation Rebate Program, we would like to encourage you to participate in other programs that will assist you in keeping the impact of the rate increase as minimal as possible. Two of these programs are the Prompt Payment Discount Program and the Budget Billing Program.

The Prompt Payment Discount Program is available to all members who pay their electric bill in full within 10 days of the billing date. By doing so, you will receive a 1.5% credit on your next month’s electric bill.

The Budget Billing Program is offered as a convenience for members who prefer to budget their electric payments. Over the course of a typical year, your monthly electric bills go up and down depending on the season and the amount of energy you use. With Budget Billing, your budget payment will stay the same all year long, thus helping to keep the impact of the rate increase minimal.

By evaluating an average residential monthly electric bill of $80, the above statement can be illustrated. In the higher usage months of November through April, that average bill is $95 and in the lower usage months of May through October, it is $65. By going on budget billing and adjusting for the rate increase, the monthly budget amount would be $88, lower than the higher month’s average bill of $95.

For information about the Conservation Rebate Program, call Marketing. For information about the Prompt Payment Discount or the Budget Billing Programs, call Customer Service. 541-536-2126


Bill A. Kopacz
General Manager

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