Over the past few months the Consumers Power staff and board of directors have analyzed projected revenues, costs of service, and current power rates to ensure that the Cooperative’s short and long term financial goals and lender requirements are met.
Beginning with billing statements generated on or after July 1, 2019, members will see an 8 percent rate adjustment. The average residential member will see an $8 increase in their monthly bill.
Through the last decade, CPI’s rates have increased at less than 2 percent a year—essentially following inflation—despite a variety of steadily rising business costs, including the following:
- The Bonneville Power Administration is proposing a modest transmission rate increase for fiscal year 2020, which will take effect in October.
- Wood, copper, steel and aluminum, used in transformers, regulators, poles and wire, have increased significantly due to tariffs and shortages from increased nationwide demand as a result of wildfire and storm damage to utility infrastructure. Labor costs are rising as well.
- The cost of borrowing is beginning to increase. During the last decade, CPI has worked diligently, and with great success, to refinance much of our debt at record-low levels. Interest rates are now on the rise making it more expensive to borrow new capital.
- Since the 2008 recession, we have experienced flat or declining energy sales, which has put pressure on margins. At the same time, we are replacing aging utility infrastructure (poles, underground cable, transformers, etc.) at an increasing rate to maintain reliability to our members.
- CPI is increasing the retirement of legacy Capital Credits to maintain a reasonable rotation of this capital.
Average Residential Cost Comparison
Achieving the Cooperative’s short and long term financial goals, including refunds of past patronage, generating new equity, and maintaining reasonable cash reserves with affordable rate structures continues to be a focus of the board of directors. The board, and all CPI employees, are committed to operating efficiently to provide you with safe, reliable, and affordable electric service.
We also offer energy efficiency programs to help you reduce your energy use, which can help decrease your monthly electric bill, and increase the comfort and convenience in your residence or business. If you are interested in more information about our energy efficiency programs contact us at 800-872-9036.