Energy rates are going up. This week, Lower Valley Energy announced that starting Oct. 6 area residents will see a 2.63 percent increase in their energy rates.
According to Brian Tanabe, communications manager for Lower Valley Energy, the rate increase is the result of the cost of obtaining energy going up.
“Lower Valley Energy’s main electricity provider, Bonneville Power Administration (BPA), announced this summer in its Final Record of Decision it will be raising rates,” Tanabe said. “The cost of the power Lower Valley Energy receives is essentially increasing by six percent. BPA examines its rate structure to the over 140 utilities it serves in the region.”
According to information provided by Lower Valley Energy, in order to maintain its fiscal health, and in re-examining costs of service and operational efficiencies, the Lower Valley Energy cooperative “cannot absorb the entire upward pressure of wholesale rates.”
“Effective Oct. 6 it is necessary to increase electric rates by 2.63 percent,” Tanabe said. “Lower Valley Energy continues to maintain some of the lowest electric rates in the country.”
According to Lower Valley Energy, BPA derives the “majority of its power from the federal dam system in the Columbia River Basin in the Pacific Northwest.”
“There are many moving parts to BPA’s entire system and the cost increase is based largely on lower-than-expected demand for power, a declining forecast of surplus power sales revenues due to lower market prices, and increased wildlife mitigation programs,” said Tanabe. “Lower Valley Energy realizes the impact any rate adjustment can have. As your energy provider, Lower Valley Energy wants you to know it is doing everything possible to keep retail rates as low as possible.”
For more information on the rate increase contact Lower Valley Energy at 885-3175.