Crow Wing Power has been fortunate to have been able to maintain stable rates with no changes for the past five years, during which we benefited from major membership growth and weather factors, which resulted in healthy kilowatt hour sales.
However, kilowatt-hour sales have slowed and the inflationary impact on the price of energy and critical electrical distribution equipment is causing a projected budget shortfall in 2024. That reality is causing us to make necessary rate adjustments to enable us to meet the service needs of our Cooperative.
The Board of Directors spent a day in November at their annual review session understanding every aspect of our 2024 budget needs and learned where we could postpone expenses or make adjustments. After careful consideration, they approved the budget at their November Board meeting, knowing rate adjustments would be needed.
Management and staff presented a plan of action at the December Board meeting, where it was determined that adjusting both the basic service charge, currently referred to as the Service Availability Charge, and the kilowatt hour energy rate would serve the best interests of all members and contribute to the sustained health of the Cooperative.
These adjustments will take effect on March 1 and be reflected on April bills for March’s electric use. The board felt that this would contribute to easing the challenges associated with higher demand during the winter months.
The average residential member will see a 9.3% increase. That average is based on a predicted residential household using 860 kWh/month, but will vary greatly depending on the home’s energy use.
The basic monthly service charge for residential members will adjust from $24.00 to $29.50. The energy rate will have a slight change from 10.9¢ to 11.45¢/kilowatt hour (kWh). Depending on weather factors and kilowatt hour sales, the summer PCA could also adjust from .05¢/kWh to 2.5¢/kWh (for June, July and August) when wholesale power costs are higher.
I’ll keep you informed,
Bruce L. Kraemer, CEO