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Rates To Offset $5 Million In Cost Increases

First Rate Increase In 7 Years

 

According to General Manager/CEO Dan L. Brown, rising wholesale power costs will create a $5 million revenue shortfall in 2016, leading Cuivre River to its first energy rate increase since 2009.

 

Wholesale rates are ramping up in stages. A 2.3% increase went into effect January 1. An additional 3% increase takes effect April 1. Cuivre River will implement an average rate increase of about 5.5% effective March 1, to be billed in April.

 

"The increase is necessary to help Cuivre River meet its financial obligations, provide safe and reliable electricity, and continue to meet other member needs," says Brown. The amount of the increase will vary among rate classifications.

 

Wholesale power costs account for 70% of Cuivre River's operating expenses. These costs are based on two primary factors: the overall maximum capacity (demand) Cuivre River members require throughout the year, and the quantity of kilowatt-hours (kwhs) consumed.

 

The Cuivre River Board of Directors works to set rates that are equitable to all members, taking both demand and kwh use into account.

 

New formulas are being developed for all rate classifications, including residential, small commercial, public building, large power and schools. New rates will be finalized and available mid-February.

 

"We don't know what the future holds, but we're hopeful that we will be able to avoid another increase for the next few years," Brown adds.

 

Schedule A Residential Rates will be published in the next edition of the Current Times.