East River Electric To Increase Wholesale Rates
October 8, 2008
East River Electric Power Cooperative will experience a 12.8% wholesale rate increase to its members for 2009.
The increase is in part, a result of nine years of continuing drought on the Missouri River. Western Area Power Administration (WAPA) has contractual obligations to provide a fixed amount of power to its customers like East River. Because of historic low water levels, hydroelectric power production remains at very low levels. As a result, WAPA has been forced to purchase power on the open market to fulfill its obligations but at a much higher cost.
East River Electric is also an owner of Basin Electric Cooperative headquartered in Bismarck, ND. Basin Electric provides supplemental bulk power supply to East River and other cooperatives in the upper great plains. Basin Electric is also increasing its wholesale rates due to sharp increases in rail shipping costs for coal, increased fuel costs for coal and natural gas used in its power plants, and the general increases in operation and maintenance.
Though these wholesale rate increases are necessary to meet rising costs, East River Electric has offered its members a sustained rate stability in past years.
“As we consider these wholesale rate increases it is notable that East River’s wholesale rates will remain competitive compared to other wholesale providers. Though this rise in rates will present challenges, the likely increases in 2009 will return wholesale rates to levels that are only modestly higher than they were in 1985,” stated Jeff Nelson, East River Electric General Manager.
