Webmail

Weather

Online Billing

Dear Bridger Valley Electric Member,

For the first time in nearly twenty years, Bridger Valley Electric Association (BVEA) will soon increase our rates for electric service.  At their regular meeting on June 9, 2009 the Bridger Valley Electric Board of Directors adopted a motion to increase electric rates by 5 percent effective with the August billing.  This change is the first rate increase since 1989.  The rate increase is necessary for us to avoid falling dangerously close to the minimum financial ratios required by lenders.

The 5 percent increase will apply to all rate classes (residential, irrigation, large power, etc,) and all components of the rate (demand, energy, and customer charge) with a couple of exceptions.  The rates charged to three large customers who are on special contracts will not be increased at this time since the contract dictates the rate.  Also the cost of those kilowatt-hours (kWh’s) qualifying for the special heating incentive rate will increased by an additional 6 percent.

The average residential customer will see their monthly bill increase from $59.85 to $62.84.  The typical customer using the heating incentive rate will be paying $105.87 under the new rate, compared to $99.72 at the current rate.   

This rate increase comes more than a year after our members voted to exempt us from the jurisdiction of the Wyoming Public Service Commission (WPSC) for the setting of rates.  Before that time and since, we have stated that a rate increase was likely in the near future.  Without the exemption from WPSC regulation, the increase would have been proposed several months earlier and would likely have been for a larger amount.  This is because of the long lead time and the added cost of obtaining public service commission approval under the previous regulatory scenario.

The Consumer Price Index has increased by 73 percent since BVEA’s last rate increase in 1989.  The cost of a typical power transformer has gone up by 95 percent.  And a gallon of gasoline is nearly 80 percent more now than in 1989.  Most energy costs have increased significantly, especially in recent years.  Despite these inflationary pressures, BVEA has been able to avoid raising rates for a number of reasons. 

Wholesale power, our single largest cost, has been stable over much of that time.  In addition, steady growth in sales has allowed us to spread all costs over more kWh’s, thus keeping the average cost per kWh from increasing.  Also, we have earned sufficient margins without raising rates to provide most of the capital needed for new and replacement construction of electric facilities without incurring more debt. This has helped to reduce interest expense.

As a cooperative, our objective is to provide the best possible electric service to our member owners at the lowest possible cost.  This rate increase is necessary to maintain the financial strength of the Cooperative.  It is anticipated that this rate increase will raise total annual revenue by about  $374,000.  We will begin the process of completing a cost of service and rate study.  This will take several months and will provide an indication as to whether or not each rate class is covering its costs.

Send mail to webmaster@bvea.net with questions or comments about this web site.
Last modified: 12/03/09