By Ann McCreary
Electric rates aren’t expected to change significantly for Okanogan County Electric Cooperative (OCEC) customers, based on a recently completed study of the cost of delivering service.
The study found that OCEC won’t need additional revenue during the next two years, based on the expected price increase for power it purchases from Bonneville Power Administration (BPA).
While OCEC doesn’t need more revenue that would require an increase in rates, some adjustments may be needed for individual classes of customers to reflect the actual costs of providing electricity, said General Manager David Gottula.
OCEC’s board of directors expects to approve a new rate structure in September, and new rates would take effect in January 2016 to replace the three-year rate plan that expires at the end of this year.
A public meeting is scheduled for July 13, at 7 p.m. in the Winthrop Barn, to present proposed rate changes, said Gottula.
Rates will also be discussed at the OCEC board meeting on June 22 at 3 p.m. and during a board workshop at 3 p.m. on July 27, both in the OCEC offices. Board meetings and the workshop are open to the public.
The actual cost of purchasing power from BPA won’t be known until July, when BPA sets the price that will be in effect for the next two years, Gottula said.
“If the final BPA rate increase is higher than expected, we may need to revisit the decision not to increase overall rate revenue,” he said. BPA sets its rates every two years.
A cost of service analysis (COSA), which is part of OCEC’s rate-setting process, projected revenues at $5.38 million for 2015, and expenses at $5.32 million, resulting in a 1.3 percent surplus in revenues relative to costs. Those figures were used to help develop a forecast of predicted revenues.
The COSA examined how costs are allocated among different classes of customers such as residential, commercial and irrigation. It found that surplus revenues are generated for some classes, such as larger electrical users (over 16,666 kilowatt-hours/month) and smaller users (1,200 or less kilowatt-hours/month).
Revenues for irrigators are at a deficit, and that is intentional, Gottula said. As a result of surveys and customer feedback, the current rate structure provides a small subsidy to support local agriculture, he said.
The current rate structure, which phased out an unpopular demand charge for residential customers, was approved in 2012.
