MEEKER | It has been five years since WREA last increased its rates which means the cost of electricity has remained the same since January 2018. During this same five-year period, WREA’s electric loads and corresponding revenue decreased by 25% with the decline in oil and gas production in the Piceance Creek area. At the direction of the Board, WREA offset the loss in revenue with efficiencies in technology, use of WREA’s rate stabilization fund, doing more with less and not replacing all recent retirees. “We have left no stone unturned with trimming budgets, using WREA’s rate stabilization fund and by not replacing all retirees; we are down to 27 full time employees, and we had 35 in 2014. With inflation around 8%, the rise in the cost of goods and services including fuel, we simply could not avoid a rate increase,” said WREA’s General Manager, Alan Michalewicz.
After a lengthy deliberation at the November 16, 2022, board meeting, the WREA Board approved a 4% rate increase on all rate classes except for Yard Lighting and a slight increase to the monthly Service Charge for the Residential, Small Commercial, Irrigation and the LP-1 Rate Classes. A full rate schedule and letter will be mailed to the membership on Dec. 1, 2022 and is posted in the legal notices on PAGE 15. The rate increase is estimated to cost the average residential home, which is estimated to use 900 kwh/month, an additional $6.50 a month. It will be less for apartments and smaller homes. The Residential and Small Commercial energy rate will increase about $4.00 a month from $0.113/kwh to $0.11752/kwh and the residential Service Charge will increase $2.50 a month from $15.00 a month to $17.50 a month per meter. The monthly Service Charge is associated with WREA’s facilities including poles, wires and meters.
“We monitor finances closely as a management team and with the Board of Directors. We had hoped to keep rates stable one more year, but in the end, a rate increase was required to address the continued rise in our costs,” Michalewicz said. Even with the decline in revenues, “WREA remains financially stable, but this rate increase is simply required to keep up with the cost of doing business,” said Michalewicz.
“We know that our members are experiencing an increase in all costs, from groceries to Netlix to fuel and we worked hard for five years to avoid adding to that burden, but the unfortunate time has come to raise electric rates”, said Hal Pearce, WREA’s Board President. Pearce went on to say that the Board debated all the options prior to making its decision. “On behalf of the Board, I want to thank the staff for their hard work over the last few years, specifically doing more with less and their work on the 2023 budget. Every department trimmed where it could while still being able to provide safe and reliable power to our membership”.
Members may access their usage on WREA’s website through Smarthub and estimate how the rate increase will impact their specific bill. Winter has arrived and WREA encourages all members to find energy efficiencies where they can by unplugging unnecessary equipment and electronics, managing thermostats, installing timers on holiday lights and truck engine warmers, and using energy efficient appliances. Michalewicz said, “The Board’s directive remains the same which is to provide members with safe, reliable and affordable electricity with the highest degree of customer service and we intend to do that even with tightened budgets.” Michalewicz encourages members to call WREA at 970-878-5041 with questions about the rate increase, rates in general or any other matter.
HOPEWEST PRESS RELEASE | Special to the Herald Times
