VEA Creates Rate Stability For Its Members In 2008

Posted: June 4, 2007

For Immediate Release
Valley Electric Association
800 E. Hwy 372
Pahrump, NV  89048

Pahrump, NV - Valley Electric Association (VEA) has locked in a power purchase contract for 2008 where they have achieved rate stability, so VEA member rates will stay the same next year! This, coming off the heels of Nevada Power and other utilities across the country facing significant cost increases over the next several years causing them to raise rates by 3.7% or more.

In a volatile market where prices can elevate in a matter of minutes, securing this contract allows VEA members to benefit from rate stability for one more year. VEA is presently exposed to market fluctuations due to the lack of a long term power agreement and not being affiliated with a generation plant. In the past VEA has been able to make favorable market purchases when the market was not quite as volatile. Due to politics, the weather, and other world commodity economies, this adds to the volatility of the market.

Thomas Husted, CEO of Valley Electric Association, said "Over the past year we have been working on a power resource plan which includes the immediate needs and future needs of the Association in order to provide our members with rate stability.
We achieved our immediate goal of making sure that 2008 was covered without a rate increase barring any unforeseen issues. We have entered into an agreement with Powerex, (British Columbia Hydro) to provide us with power next year, which will allow us to maintain the present retail rate structure and meet our financial obligations for 2008."

VEA purchases approximately 80% of its power on the open market and the remaining 20% is from hydro purchases. VEA currently contracts with AEPCO (Arizona Electric Power Cooperative) to assist in scheduling and dispatching power. The cost of power is 64% of the expenses VEA incurs.

VEA continues to monitor renewable generation such as: wind, solar, geothermal and biomass and in the short term will continue to educate our members on energy efficiency and energy conservation measures.   

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