PVREA board approves rate increase for 2013

The Poudre Valley Rural Electric Association Board of Directors has approved a rate increase of 3.9 percent, on average, for 2013.

The increase will amount to about $4.37 per month for a typical residential consumer, according to PVREA.

The rate hike follows a 4.9 percent increase in the rate of wholesale power from PVREA’s power provider, Tri-Sate Generation and Transmission Inc.

Tri-State has also restructured wholesale rates, resulting in an additional 1.2 percent increase to PVREA. In total, the rate increase for PVREA is 6.1 percent.

This equates to an jump in costs to PVREA of $4.2 million in 2013. Wholesale power represents about 77 percent of PVREA’s total expenses.

“Tri-State and PVREA are not in a unique position,´ said Jack Schneider, PVREA board president. “A number of other utilities across the state, region and country are facing the same issue of having to increase rates as regulatory and environmental costs continue to accelerate and the next generation of power plants and new resources are being developed.”



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