Manager’s Message – October 2017

New Rate Structure Effective with November Billing

In late July, the Bonneville Power Administration announced a regionwide rate increase of 5.4 percent to its wholesale power rates to the region’s utilities. The increase stems from higher costs to operate and maintain the aging hydro system, higher long-term fish and wildlife costs, upgrades to an aging transmission system and reduced revenues from surplus power sales due to lower market prices for energy.

In anticipation of this rate increase, Wasco Electric started a rate review process late last year with a consulting firm that conducted a cost-of-service analysis. The goals of this study were to create a rate structure that fairly allocated costs among the different rate classifications to eliminate particular classifications from subsidizing the other rate classes, as well as separate the fixed costs of the cooperative from the variable energy costs.

After several months of reviewing different rate options, in August the board of directors adopted a new rate structure with an eight-year phase-in to get to the true cost of service and create cost equalization among rate classifications.

The first year of this new rate structure will result in an overall increase in revenue from rates of 3.2 percent. The actual increase in rates among the rate classifications will vary from no increase to a 7.67 percent increase, depending on that classification’s current contribution to the overall financial needs of the cooperative.

A complete breakdown of the rate changes among the different classifications that will go into effect with your November billing statement.

Director Elections

The Wasco Electric Cooperative nominating committee, consisting of members from each director district, met September 6 to nominate candidates for election at this year’s annual meeting.

This year’s candidates for election to three-year terms as director are:

• District 1: Mathew Clausen, incumbent. Two nominees declined nomination.
• District 2: Ron Holmes, incumbent; and Stacy Eakin. Two nominees declined nomination.
• District 3: DeOra Patton, incumbent; four nominees declined nomination.

These candidates are up for election at the 78th Annual Meeting of Wasco Electric Cooperative on Saturday, November 18. I invite each of you to attend.

If you are unable to attend, absentee ballots and the annual meeting booklet will be mailed at the end of October. I encourage each member to vote on the leadership of the cooperative.

As always, if you have any questions regarding any aspect of your cooperative, feel free to stop by or give us a call.

Jeff Davis
General Manager