Rate Changes FAQ

Frequently Asked Questions

Background

As a member-owned and not-for-profit utility, Central Electric Cooperative proudly serves its members clean, safe, renewable electricity near the lowest rates in the state and country. CEC’s dedication to providing the highest quality electric service at a reasonable cost faces challenges in the current economic environment.

CEC has successfully maintained rates since 2020 but now requires a rate revenue increase of 5.9% to meet operating costs and cover needed capital improvements. The rate change will impact all customer classes effective January 1, 2024. Depending on monthly usage, CEC’s residential members will see a 5-7% rate increase. To learn more, please use the rate calculator under “How will this affect my bill?”

Why is this rate increase necessary?

Three major cost drivers influenced this action: Bonneville Power Administration’s all-in rate increase for power, surging inflation for electric equipment, and CEC’s ongoing investments in updating its infrastructure to maintain a modern and reliable electric system.

See the December 2023 Ruralite Article. 

Increase in BPA’s Power Costs 

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 to ensure they meet operating costs and capital spending, and for the 2024-2025 rate period, the overall power, transmission and other services are more expensive. The all-in rate change for CEC is an 11.5% increase in power costs.

Inflationary Cost Pressures

The region continues to experience the lingering adverse financial impacts of the COVID-19 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, CEC has seen the cost of a power pole rise 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 the 15-month supply chain delays.

Strategic Investment Initiative

The inflationary price increases reduce the co-op’s purchasing power, adversely impacting the $147M allocated for CEC’s decade-long 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, which includes equipment upgrades, deploying new technology, and aggressively conducting vegetation management.

Funding also goes toward expanding capacity at several existing substations to meet Central Oregon’s increasing requirement for electricity, including plans for a new substation to deliver power to the new Stevens Road development in SE Bend.