WEC Responds to Regional Power Cost Increases
Here at Wasco Electric Cooperative (WEC), we buy our wholesale power from Bonneville Power Administration. The value of this relationship is access to low-cost, clean, carbon-free hydroelectric power that enables WEC to deliver safe and reliable electricity to you.
As with most goods and services, power costs continue to rise. BPA’s wholesale power costs account for 40% of WEC’s annual expenses. In addition, supply chain constraints and inflation are significant factors in our overall cost of doing business.
Earlier this summer, BPA announced it would implement rate increases totaling 19% over the 3-year rate period from October 1, 2025, through September 30, 2028. This affects the cost of power for all utilities served by BPA, including WEC. As a self-financed agency, BPA does not rely on federal funds for operations and maintenance. Instead, the rates BPA collects from its customers, such as WEC, provide the necessary revenue to run the organization.
Several factors contribute to BPA’s 19% increase. These include higher wholesale electricity and transmission rates, investments in infrastructure to meet the unprecedented demand for power—expected to grow by more than 20% over the next 10 years—and conservation programs. With the implementation of BPA’s new rates this month, WEC will experience a 4.6% increase in power costs and a 15.4% increase in transmission costs.
While WEC anticipated higher wholesale power rates over the next three years, the increases are greater than budgeted. Because of this, WEC’s board of directors and staff are evaluating rate options. This process includes conducting a cost-of-service analysis, an analytical tool used to design rates that fairly and equitably assign cost responsibility to each rate class.
The COSA process allocates all costs incurred by WEC to build, operate, and maintain its system across various member classes—residential, commercial, industrial, and irrigation. It then identifies the revenue necessary from each class to ensure it is paying its fair share of total operating costs. WEC will review the results to determine the necessary changes to electric service rates.
In preparation for this process, we are implementing a new statement design. This update allows us to provide you with more detailed information about how you consume energy and how charges are applied to your account. The new look debuts with November statements.
We remain committed to managing costs within our control without compromising the safety and reliability of the electricity we deliver to you. As more information becomes available, we will communicate with you through Ruralite, direct mailings, bill inserts, and our website. We appreciate your engagement as we navigate these changes together.
General Manager Lindsay Forepaugh