{"id":41123,"date":"2023-09-28T16:30:24","date_gmt":"2023-09-28T23:30:24","guid":{"rendered":"https:\/\/www.cec.coop\/?page_id=41123"},"modified":"2024-01-09T16:41:55","modified_gmt":"2024-01-10T00:41:55","slug":"rate-changes-faq","status":"publish","type":"page","link":"https:\/\/www.cec.coop\/rate-changes-faq\/","title":{"rendered":"Rate Changes FAQ"},"content":{"rendered":"

Frequently Asked Questions<\/strong><\/h2>\n

Background<\/strong><\/h3>\n

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\u2019s dedication to providing the highest quality electric service at a reasonable cost faces challenges in the current economic environment.<\/p>\n

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\u2019s residential members will see a 5-7% rate increase. <\/strong><\/em>To learn more, please use the rate calculator under “How will this affect my bill?”<\/p>\n

Why is this rate increase necessary?<\/strong><\/p>\n

Three major cost drivers influenced this action: Bonneville Power Administration\u2019s all-in rate increase for power, surging inflation for electric equipment, and CEC\u2019s ongoing investments in updating its infrastructure to maintain a modern and reliable electric system.<\/p>\n

See the December 2023 Ruralite Article<\/a>.\u00a0<\/em><\/p>\n

Increase in BPA’s Power Costs<\/em><\/strong>\u00a0<\/strong><\/h4>\n

BPA’s hydropower generation supplies nearly all of CEC’s wholesale electricity, and its rate increases are beyond CEC’s control.<\/p>\n

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.<\/p>\n

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*Average increase in costs from line materials suppliers<\/figcaption><\/figure>\n

Inflationary Cost Pressures<\/em><\/strong><\/h4>\n

The region continues to experience the lingering adverse financial impacts of the COVID-19 pandemic\u2014inflation 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.<\/p>\n

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.<\/p>\n

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Strategic Investment Initiative<\/em><\/strong><\/h4>\n

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The inflationary price increases reduce the co-op\u2019s purchasing power, adversely impacting the $147M allocated for CEC\u2019s 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\u2019s wildfire mitigation plan, which includes equipment upgrades, deploying new technology, and aggressively conducting vegetation management.<\/p>\n

Funding also goes toward expanding capacity at several existing substations to meet Central Oregon\u2019s increasing requirement for electricity, including plans for a new substation to deliver power to the new Stevens Road development in SE Bend.<\/p>\n

How will this affect my bill?<\/a><\/div>

The price adjustment on your monthly bill will vary depending on your monthly usage. We encourage you to use the rate calculator here to anticipate the impact on your bill when the new residential rates go into effect.<\/p>\n

Directions: Enter your estimated kilowatt hours below and select either summer or winter rates to see an estimated bill range.<\/em><\/p>\n