Managers Message

Planning and Budgeting for Rate Increases from BPA

Dear Member

For the last several months we have provided information as to why Benton REA retail rates will be increasing in the spring of 2012.  The Benton REA retail rate increase will be driven entirely by the cost of wholesale power.  The Bonneville Power Administration (BPA) will increase the cost of wholesale power sold to Benton REA and other BPA customers on October 1st, 2011.

Cost increases are not welcome anytime, but power cost increases in the fall when we face colder weather and higher electrical usage can be particularly difficult. In addition, cost increases implemented in the fall do not give us time to adjust our individual budgets to accommodate them.

In recognition of these difficulties, the Benton REA board will not be raising retail rates this fall, but rather will be implementing a retail rate increase in the spring of 2012. The amount of the retail rate increase has not been determined and is entirely dependent upon the increased cost of wholesale power. The increase in power costs from BPA remains unknown at this time.  Once BPA formally announces its rate increase, we will determine the impact on Benton REA retail rates.  As soon as possible we will let all members know what the retail rate increases will be so that they can take appropriate measures to include the increase in their planning and budgeting for 2012.  While cost increases are never welcome, the ability to plan ahead and budget can help.  We commit to continue to do everything we can to keep electricity costs down, after all that is "The Cooperative Way.”

Sincerely yours,