Previously, I shared that rising costs were creating an $8 million gap in UEC’s revenue needs. That number was based on early forecasts of what it would take to keep your cooperative strong in the face of higher power costs, climbing insurance premiums, and the rising price of essential materials like poles, wire, and transformers.
Before making any decisions, we took a hard look at every part of our expenses, challenging staff to tighten spending and find efficiencies wherever possible. Those efforts paid off — narrowing that gap by nearly $800,000.
Even with those savings however, the pressures remain. Wholesale power — our largest single expense — is increasing by 11 percent this year alone. Because every member uses the system differently, we reviewed our rate classes to make sure each group — residential, commercial, agricultural, and industrial — pays its fair share based on the actual cost to serve them.
For some rate classes, we found that UEC’s retail energy charge is currently lower than the wholesale price we will be paying to purchase the power to serve them.
We know rate adjustments are never welcome news. That’s why we’ve taken the time to approach this one thoughtfully, focusing on equity and limiting the impact as much as possible. We’ll review our finances again next year and continue looking for ways to control costs before passing any adjustments on to you.
For complete details on the new rates, by rate class, along with practical tips and programs to help you lower your costs through energy efficiency, turn to pages 28 and 29.
The updated rates will take effect with your October usage and be reflected on your November bills. For the average residential member, the impact is roughly .40 cents a day, or approximately $12 a month.
To see how this change will affect your bill, utilize our online calculator at: www. umatillaelectric.com. Our goal is to give you the tools and information you need to understand your bill and the “why” behind the numbers.
Thank you for your trust as we work together to keep your cooperative strong, reliable, and ready for the future.
Robert Echenrode
President/CEO