Rates would be reduced immediately, and members would enjoy a period of rate stability that is forecasted to be 10 years, barring any unforeseen changes. For example, the 9.9 percent rate increase, which went into effect on July 1, 2016, would go away. Next, some of the costs that drive rate increases, like debt payments and depreciation, would be lower because that debt would be lower. As part of the sales agreement, the new owners will contract with VEA to operate, maintain, and manage the system for them.
That produces another revenue stream, which also keeps rates down, much like our contracts with Creech AFB and NNSS (DOE), which might also mean hiring additional VEA personnel. Finally, although VEA would no longer own the system, the new owner would be subject to regulatory approvals set forth by the Federal Energy Regulatory Commission. FERC exists to protect ratepayers from dramatic rate adjustments.