Manager’s Message – January 2025
PrintA Look Ahead at Power Costs
Happy New Year! Now that winter is in full swing, I hope you are doing your best to enjoy what our area has to offer for winter activities. Whether it’s skiing, ice fishing, sledding, or playing in the snow with your kids, I hope you take pleasure in this winter season.
Most of Northern Lights’ power comes from the Bonneville Power Administration (BPA), which operates the federal dams and a nuclear power plant. Every 2 years, BPA conducts a formal process, known as a rate case, to ensure that its projected revenue from the electricity it sells will cover the expenses it incurs. The amount BPA charges must cover payments on the federal dams, building and maintaining transmission lines, fish and wildlife mitigation, energy-efficiency programs, and other obligations that are required by federal and state laws.
BPA’s wholesale power rates have increased by 20% over the past 5 years. Thus, an increase in BPA rates has a huge impact on the expenses of our cooperative. In recent years, we also have seen significant increases in costs for goods and services. Unfortunately, we have reached a tipping point where we simply cannot continue to maintain the level of service you want and deserve without adjusting rates.
NLI has engaged the services of GDS Associates to conduct a cost-of-service analysis (COSA) to review our rates. During the course of the COSA, all costs of the cooperative are reviewed, including the costs to build, operate, and maintain our system. These costs are then broken down and allocated according to member classes, such as commercial or residential, and tracked back to the revenues produced for each class to determine fair rates across all classes. The board will analyze the COSA results later this spring to determine what rate increases are necessary to maintain the financial stability of the cooperative.
Providing you with safe and reliable electricity is our top priority. Rate increases are tough for everyone, but this move will help NLI continue to keep electric service safe and reliable.
Annie Terracciano
General Manager
