Outage Map
Rate Adjustments Coming This Fall
Central Electric Cooperative (CEC), a member-owned, not-for-profit utility, buys nearly all of its wholesale electricity from Bonneville Power Administration.
The great value of this low-cost, clean, carbon-free hydroelectric power enables CEC to deliver safe, reliable electricity to its members at some of the lowest rates in the country.
Like with almost all goods and services, costs continue to rise. CEC is not immune. BPA’s wholesale power, which accounts for more than 50% of CEC’s annual expenses, as well as inflation and supply chain issues, are significant factors in CEC’s cost of doing business.
Earlier this year, BPA notified its power customers that there will be an upward rate adjustment of nearly 19% over the 3-year rate period beginning October 1, 2025, and ending September 30, 2028.
BPA is a self-financed federal agency that does not rely on annual appropriations or tax dollars for operations and maintenance from the federal government. Its rates must enable it to recover its total costs, including debt obligations to the Federal Treasury.
While wholesale electricity and transmission rates are the primary drivers of the 19% rate increase, electricity costs are expected to continue rising given the anticipated increase in power demand of more than 20% over the next decade. BPA must also meet requirements for fish and wildlife and conservation programs, which play a role in determining rates.
Simultaneously, inflation and supply chain issues continue to incrementally increase CEC’s costs for its electrical equipment—power poles, underground cable, and residential and commercial transformers—as we invest in maintaining and hardening our system to enhance reliability, shorten outage times, mitigate wildfire risks, and meet our organic growth in Central Oregon.
In anticipation, CEC is wrapping up a cost-of-service analysis, an effective analytical tool used to design rates that fairly and equitably assign cost responsibility to each rate class.
The COSA process assigns all costs incurred by the co-op to build, operate, and maintain its system across various member classes, including residential, commercial, industrial, and irrigation. The process looks at the revenue necessary to be collected from each of these classes to ensure they are paying their fair share of total operating costs.
We will review the results to determine the extent of necessary changes to electric service rates.
Over time, CEC has successfully maintained its rates at a low level. The latest available statistics show CEC’s average residential rate is 30% less than private utility rates.
We will take every step to manage costs within our control without compromising the safety and reliability of the electricity we deliver to you. Check back here for more information and details in October’s President’s Message.
Brad Wilson
President and CEO