2024 Rate Changes

As a member-owned, not-for-profit utility, Central Electric Cooperative proudly serves its members clean, safe, renewable electricity near the lowest rates in the state and country. We are facing challenges in the current economic climate as we try to meet CEC’s mission to provide the highest quality electric service at a reasonable cost.

CEC has successfully maintained rates since 2020, but due to the Bonneville Power Administration’s increased cost for power, dramatically inflated prices for electric equipment, and the co-op’s ongoing investments in updating its electric infrastructure to maintain a modern and reliable system, CEC must implement a rate change impacting all customer classes effective January 1, 2024.

As economic conditions have changed, CEC conducted a cost-of-service analysis—a fundamental tool to evaluate and design rates to cover the costs of providing power—and engaged our member rate design advisory committee representing all customer classes.

The committee reviewed the COSA results and recommended rate changes to meet revenue requirements, which the board of directors adopted in September. Depending on their monthly use, CEC’s residential members will see a 5% to 7% increase on their bills.

BPA’s hydropower generation supplies nearly all of CEC’s wholesale electricity, and its rate increases are beyond CEC’s control. BPA adjusts its rates every two years due to increased operating costs and capital spending. The 2024-2025 all-in rate, which includes power and transmission costs, has a substantial financial impact on CEC.

The region also feels the lingering adverse financial impacts of the COVID19 pandemic: inflation and supply chain delays. Just as consumers have seen a dramatic increase in costs for goods— including gas, food and services— inflation has also hit the electric utility industry hard.

Since 2019, the cost of a power pole has risen by 35%, overhead power cables by 45%, underground power cables by 79% and a single-phase (residential) transformer by almost 100%. If ordering the equipment today, the price tag would likely be higher upon receipt of the materials due to extended supply chain delays.

These price increases reduce the co-op’s purchasing power, adversely impacting the $147 million allocated for CEC’s decadelong strategic investment initiative. In its fifth year, this essential initiative funds the replacement of aging power poles and underground cables to ensure continued safety, efficiency and long-term reliability. The effort includes the co-op’s wildfire mitigation plan, requiring equipment upgrades, deploying new technology and aggressively conducting vegetation management.

Funding also goes toward expanding capacity at new and existing substations to meet Central Oregon’s growth and continued maintenance activities to provide safe and reliable power for our members and communities.

Look for more information in the December issue of Ruralite. To see how the rate changes will affect you, use the rate calculator on CEC’s website, https://www.cec.coop/rate-changes-faq.

 Brad Wilson

President and CEO