In 2022, YVEA performed a Cost of Service Study (COSS), which showed us whether each customer class (residential, commercial, and industrial, for example) is adequately covering the costs of service, fuel, labor, equipment, etc. to serve those members. Based on the study and the 2023 rates from our power suppliers, we are raising rates to distribute costs equitably to our members. Several factors went into this decision. Here are the main drivers for the rate increase:
- Power Supply Costs: Xcel Energy is raising our wholesale power supply rate by 14% for 2023. Wholesale power costs comprise almost two-thirds of all YVEA expenses, so this increase significantly impacts YVEA’s rates.
- Maintaining and Investing in Our Infrastructure, which includes:
- Construction Workplan –Every year, we invest millions of dollars back into the system, which improves our system reliability for all members
- Wildfire Mitigation – As our summers see less precipitation, we need to make sure our system helps aid in the prevention of wildfires. This includes tree trimming projects, installing more electronic reclosures, and upgrading our system so we can switch to Fire Protection Mode as quickly as needed.
- Investing in a responsive grid – We are continually upgrading our system to decrease outages’ frequency, duration, and response time, and the only way to achieve this is by investing in digital technologies. We are building a smarter grid that will help to provide even greater reliability to our members.
- The Rising Cost of Doing Business: Just like our members, we are seeing increased costs affecting how we operate, and our dollar is not going as far as it once was. For us to continue to successfully run YVEA and deliver safe, reliable, and affordable power, we need to take these costs into account when budgeting for materials purchased, maintaining our fleet, hiring and retaining skilled staff who can help us maintain and support our infrastructure, and the increased cost of living, to name a few of the factors that make up the rising costs of doing business.