FOR IMMEDIATE RELEASE
October 31, 2017 - The Poudre Valley Rural Electric Association (PVREA) Board of Directors announced today the Cooperative will not increase rates for 2018 and 2019.
“This action was only possible due to the Cooperative’s Board of Directors and employees efforts to control costs and improve efficiencies,” PVREA’s President and Chief Executive Officer Jeff Wadsworth said.
As a member-owned electric cooperative who operates on a not-for-profit basis, PVREA is governed by democratic principles and the membership elects a Board of Directors to guide and govern the Cooperative. Along with approving rates and annual budget, the Board of Directors also monitors the Cooperative’s equity, capital credits, debts, financial targets, and overall financial health. At a recent board meeting, the Board of Directors deemed the Cooperative’s financial status healthy and supportive of no rate increase for the next two years.
In efforts to maintain affordable rates for members and avoid rate increases, one of the Cooperative’s strategic goals is to control variable costs. While 79 percent of the Cooperative’s cost is purchasing wholesale power, the remaining 21 percent is debt interest, operations, maintenance and administrative costs.
“While maintaining the Cooperative’s financial stability, the Board of Directors and staff also focused on controlling cost by managing debt, making investments to improve operational efficiencies, and implement technologies to improve internal processes. This includes the $13 million in savings from refinancing debt,” Wadsworth added. “It’s just one of the many ways we’re looking out for our members’ best interest.”
PVREA has also engaged and worked diligently with Tri-State Generation and Transmission, the Cooperative’s wholesale power supplier, in implementing methods to deter wholesale power rate increases.
The Cooperative has aimed to control these costs and remain below a certain dollar threshold for each co-op member, which has resulted in preventing rate increases for the next two years and holding record of one of the lowest energy rates in Colorado. Of all the electric cooperatives in Colorado who purchase power from Tri-State Generation and Transmission, PVREA has the lowest residential rate.