United Power has been informed that we will have an increase in the cost of wholesale power beginning in 2012. Our wholesale power is supplied by Tri-State Generation and Transmission, the cooperative that operates the power plants and maintains the transmission lines that bring power to our cooperative. The Tri-State Board of Directors approved a 4.8% wholesale power cost increase beginning in 2012 to all the member cooperatives, including United Power. It’s important to understand that 70% of the rates you pay are actually for wholesale power – a cost that is difficult for United Power to control.
"The board and staff will be working together in the coming weeks to see how best to mitigate the impact of this increase to our customers," stated Ron Asche, CEO. "We are actively managing our controllable costs, and investigating additional ways that we can help our customers manage their use to lessen the impact of this increase. Costs for nearly everything associated with the power we receive continue to rise, including transportation costs, raw materials, and compliance with environmental regulations. We continue to make decisions that represent our members’ best interests in providing both affordable and reliable power."
The next step in this process is for United Power’s board to look at the increase and determine how much, if any, we can "manage" down to reduce the impact to our customers. The board ultimately determines what the increase will be on the retail side, and asks the staff of United Power to make appropriate adjustments if possible.
"What we know for sure is that there will be some increase, and the final amount will be determined by the United Power Board in November or December," stated Asche. "At the present time, it would appear that retail rates would need to increase by approximately 3.25 to 3.5 percent. We felt it was important to get the basic information out early so people could plan for their own budget."
The increase is expected to go into effect for our members’ January usage, when seasonal usage is traditionally lower. A newly enhanced package of rebates for energy efficient appliances and equipment will also be in effect in January, allowing customers to find some innovative ways to manage their energy use. As one of Tri-State’s largest member cooperatives, United Power takes advantage of the menu of rebate offerings from Tri-State, often supplementing the rebates with additional incentives.
"We maintain an active Energy Management team that works with both residential and commercial customers to help them find innovative solutions to reduce their energy consumption," stated Director of External Affairs, Troy Whitmore. "We provide free walk-through energy audits and rebates on items ranging from dish washers to solar panels. We’re proud of the many solutions we offer for customers who are interested in managing their energy consumption. While rate increases are never welcome, we’re working hard to manage the costs we can manage and to help our members lessen the impact on their households."
Information about the pending increase will be communicated in upcoming issues of the United Newsline and here on our website.