Valley Electric Association Board of Directors Announces General Rate Adjustment

Posted: December 28, 2009

December 23, 2009

At its regularly scheduled December Meeting of the VEA Board of Directors, the Board announced a general rate adjustment to become effective on January 1, 2010.

A general rate adjustment of 6.03% has been approved and is projected to generate the revenue necessary to meet the association's financial obligations and objectives. The specific rate impact on each rate class, however, may be higher or lower than 6.03%.

The specific kWh rate adjustment for service classes: residential, irrigation, medium commercial and large commercial is 7.0%. The specific kWh rate adjustment for service classes: general and small commercial is 6.5% while the demand charge rate adjustment for medium commercial and large commercial is 5.3%.

"The last adjustment to electric rates occurred four years ago in 2006," states Thomas Husted, Valley Electric Association CEO.

The rates were adjusted at that time to meet the business expenses of 2006. Since then, diligent internal cost cutting and aggressive re-negotiation of power purchases has enabled VEA to hold the rates stable while the total overall cost of electric service has increased by 18.36%. These costs do not take into consideration additional expenses absorbed over the same time period.