News

Rate Increase Effective January 1, 2012

January 01, 2012

United Power’s board discussed and passed a 2012 budget at their November board meeting that included a 3.2% rate increase, which was a pass through of the wholesale power cost increase from our power supplier, Tri-State Generation and Transmission. The cost of wholesale power makes up about 70% of the rate our customers pay for power. Power production costs are being affected by a host of industry costs, including costs for transportation, raw material costs, and the cost of ever-increasing environmental regulations.

While the overall increase is 3.2%, the actual impact on residential customers may be slightly less. For instance, the average customer using 890 kWh monthly would see an increase of 2.94%, or about $3.12 a month.

"We are very conscious about the impact rate increases have on our members," stated Ron Asche, CEO. "Our board and staff work very hard to not only keep our budget in line, but taking a hard look at the way costs are distributed across the different rate classes. We are vigilant at keeping the actual costs to serve an account in line with the rates each member pays."

Customers utilizing the time-of-day rate will see some changes to their rate structure. Facility charges for these accounts will drop $1.55 per month – an annual savings of $18.60. Commercial customers should contact United Power’s Community Affairs Representatives for more information about this rate increase as it applies to their specific rates.

The increase goes 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 are pleased that we can continue to offer a unique selection of rebates to offset our members’ costs for energy efficient home and business upgrades," stated Director of External Affairs, Troy Whitmore. "While rate increases are never welcome, we’re working hard to help our members manage the costs of powering their homes and businesses." The latest information about rebates can always be accessed here on our website.