Electric rates to increase

Flathead Electric Cooperative members will see higher bills beginning in June, according to utility officials.

The increase will represent an annualized hike of 2.4 percent or about $2.67 per month for member customers with an average bill of about $110.

“We have decided to raise the rates incrementally,” said Flathead Electric’s spokeswoman Wendy Ostrom Price. “Our wholesale power suppliers have increased costs of about 9 percent. However, the board of trustees for the co-op has elected not to hike the retail rates for members at a comparable level. Instead, the board will continue to adjust rates incrementally.”

Price said the rate hike will reflect the increased energy charges only, indicating the basic rate, which includes costs for maintaining line infrastructure, will not increase.

“Members need to understand, we are only passing along our expenses. Our basic rate is not increasing,” Price said. “Keeping it all into perspective, we are still among the lowest rates in the country.”

Price said a majority of the energy used by member customers is the result of hydroelectricity, a cost-effective source.

“Hydroelectricity is a clean, renewable source,” she said. “Because of the hydroelectric possibilities (in Northwest Montana), we do get preferred rates, which reflect hydroelectric generation.”

Price said member customers can expect subsequent increases until the full cost of the wholesale power increase is passed along.

“Yes, we’re still likely to have the same in the future,” Price said. “I’m sure they will be an incremental increase as well.”

Flathead Electric Co-operative buys its power from Bonneville Power Administration, which is ia federal nonprofit agency based in the Pacific Northwest. Although Bonneville Power is part of the U.S. Department of Energy, it is self-funding and covers its costs by selling its products and services. Bonneville Power markets wholesale electrical power from 31 federal hydro projects in the Columbia River Basin, one nonfederal nuclear plant and several other small nonfederal power plants.

The electricity rate increase will not be the only utility-rate increase for Libby residents. As construction of the Flower Creek Dam is expected to get under way this summer, Libby water-ratepayers are expected to see an increase in their rates as well.

Libby last raised water rates in April 2012, which customers saw in their May bills. That increase raised the basic rate from $26 a month to $33 for Libby residents and from $32.53 to $41.28 for water customers who do not live inside the city limits.

Mayor Doug Roll said all rate increases are unwelcome for ratepayers.

“Increases are a burden on everyone,” Roll said. “However, there are increasing costs. Increases make it harder on everyone.”