Rate Change UPDATE
– IRP (May 23, 2005)
Our Lower Valley Energy Board and Staff
have been hard at work preparing for the changes to our electric rates
after October 2006, which will be the first change in our electric rates
since 1994. Our most recent estimate is that electric rates will
increase by 25%, which could change dramatically depending on water
conditions in the Pacific Northwest, energy markets and Bonneville Power
Administrations (BPA) financial reserves. Besides monitoring these
conditions, we are also constantly looking for ways to operate LVE more
efficiently in an effort to continue our tradition of having some of the
lowest electric rates in the country.
Although the fixed rate portion of our
contract ends in October 2006, BPA will continue to meet all of our
power requirements through 2011, with the exception of the small amount
of power we generate locally. After 2011, it appears that we will be
allocated a portion of the Snake River and Columbia River hydroelectric
systems from BPA and will be allowed to purchase power for needs above
that allocation from other sources if we think we can do it more
economically than BPA. This will be a big change in the way we have
historically operated and we have already taken many steps to prepare.
In 2004, Lower
Valley completed an Integrated Resource Plan (IRP), which compared the
economics of various supply options available to us after 2011. The IRP
can be viewed on this web site
(Click here to read the entire IRP document.).
Since completing the
IRP we have continued to explore the feasibility of many power supply
options. We are completing negotiations with Grant County Public Utility
District in Ephrata, Washington for an allocation of their hydroelectric
system which will save Lower Valley Energy $250,000 per year in power
cost for 30 years. Our Board gave approval at the May 12, 2005 board
meeting to participate in the development study of a new coal fired
plant in Delta, Utah called the Intermountain Power Project (IPP) which
will use the latest in new clean coal technology. Our share of the IPP
study project is 15MW. We have been exploring opportunities to pool our
resources with other utilities in the region to take advantage of
increased size and diversity in load savings. We also plan to step up
our conservation efforts by bringing even more conservation
opportunities and incentives to our members. We are confident we will be
prepared to meet our members growing energy needs long into the future
with the least cost mix of resources available to us and will continue
to be a low cost provider.
Following the IRP,
the next couple of steps in designing new electric rates will be the
completion of a new cost of service analysis and equity management plan.
Both will be completed by this fall and filled with the Wyoming Public
Service Commission. All three of these studies will aid us in setting
rates that are fair to all of our members and competitive. We are
committed to operate your energy cooperative very efficiently and
reliably, combined with exceptional service. We look forward to your
input as we move through the rate setting process and hope to exceed
your expectations as we provide powerful, local, solutions.
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