JACKSON, Wyo. — Lower Valley Energy (LVE) announced Thursday that its board had approved an electric rate increase of 6%, noting that it hadn’t raised electric rates since 2017. The cooperative also announced a reduction to its natural gas pricing.
The rate increase will go into effect on Oct. 1. In the announcement, LVE said the increase will be reflected in the monthly base charge paid by residential and small commercial members, regardless of how much energy is used. Large commercial and industrial users will also see an increase in the energy charge.
“For 53% of LVE members, this is a monthly base charge increase from $16 to $18,” LVE Communications Manager Brian Tanabe told Buckrail via email. “But, if your total bill is $100 on average monthly, the increase is relatively small compared to someone who uses no power.”
LVE said the increase was motivated by its board predicting a $4.5 million shortfall, citing inflationary pressures and an increase in Tier 2 power. Tanabe explained that Tier 1 power is the mandated low-cost power acquired from LVE’s federal supplier, Bonneville Power Administration, coming from the Columbia River basin. When the demand exceeds Tier 1 capacity, LVE uses Tier 2 power, which is more expensive. See more on the tier system here.
“We realize the impact any rate adjustment can have on you,” LVE said in its message to members. “As your energy provider, we want you to know we are doing everything we can to keep retail rates as low as possible while delivering safe and reliable service to you.”
LVE noted that the 2017 change amounted to a 2.63% rate increase.
A day earlier, LVE issued a press release announcing a decrease in its natural gas rate, in effect since Aug. 30. The LVE Board of Directors voted for a decrease of “approximately 19.81 cents,” about 14.75% depending on a member’s rate class. LVE attributed the decrease to its “hedging activities” and a recent decline in wholesale natural gas prices.
LVE will host town hall meetings on Oct. 1 in Jackson and Oct. 2 in Afton. For more information, contact LVE at (307) 733-2446 for Jackson members and (307) 885-3175 for Afton members.
