By Ann McCreary
An expected increase in the price of wholesale of power purchased by Okanogan County Electric Cooperative (OCEC) has prompted the board of directors to consider raising members’ rates.
The increase would start in January 2018, and would first show up on electric bills members receive in February next year.
About half of OCEC’s total costs are for purchasing power from Bonneville Power Authority (BPA), which is expected to announce a rate increase in July, said David Gottula, OCEC general manager.
“We’re looking at an increase of six to seven percent” from BPA, Gottula said.
If OCEC needs to raise rates for its members as a result, the increase is expected to be less than 5 percent, and would affect only the kilowatt-hour portion of members’ bills, not the fixed base charge, Gottula said.
OCEC has been able to absorb past increases in the wholesale power price by cutting operating costs and changing the rate system, he said.
“We have reduced internal costs over the years and were able to absorb” the increases in wholesale power costs, Gottula said.
BPA sets rates every two years. The next increase will go into effect in October 2017.
A major factor in BPA costs is related to fish and wildlife restoration and mitigation work, Gottula said. “About 30 percent of their budget is (related to) fish,” he said.
That means that about 15 percent of OCEC members’ rates are linked to fish and wildlife mitigation and recovery, he said.
The last rate adjustment by OCEC was made last year, and was “revenue neutral,” meaning it did not create added revenue for OCEC, Gottula said.
The adjustment was based on a cost of service analysis conducted by OCEC and resulted in rates increasing for some members, and decreasing for others, he said.
“In the next few weeks the OCEC board will look, in detail, at power costs, revenue requirements and possible ways to further reduce costs without jeopardizing reliability and safety,” Gottula said.
The board will make a decision in early August. If a rate increase is proposed, members will have a chance to comment and a meeting for members will be scheduled, Gottula said.
In September, after hearing what members have to say, a final decision will be made. In the meantime, Gottula said, members who have questions or comments can call him at 996-2228.
