Board Meeting held on November 14, 2024
Board approves 2025 budget
Rates will increase to meet revenue requirements - Low-income rate program established
The Board of Directors approved the MPE 2025 budget that includes a rate increase to take effect on Feb. 1, 2025, along with a new rate discount program for those who may be disproportionately impacted by any rate changes.
A cost-of-service study and proposed rate design were recently completed for our cooperative by industry experts at PSE, an independent organization that serves utilities across North America. The objective of the rate design was to ensure that rates are fair, equitable, and financially adequate, while reflecting cost causation, promoting efficient energy use, and remaining competitive with similar co-ops. The rate design also aimed to recover revenue to meet MPE’s operational needs as a not-for-profit, member-owned cooperative.
MPE CFO/Manager of Finance Emily Meek reported to the Board that MPE is in a strong financial position leading into the power supply transition that begins on Feb. 1, 2025. Yet, as projected, temporary declines in MPE’s financial ratios are anticipated moving forward. These declines are primarily attributed to the contract termination payment owed to Tri-State G&T as MPE exits that agreement. While MPE expected these declines and the related rate increases, the focus has been on the longer-term benefits to MPE membership, including rate stability.
The upcoming rate increase is only the second for MPE in 9 years. It will be divided between the service availability and energy charges. The average residential electric bill will increase by approximately $11.77 monthly. However, individual rate classes will be impacted differently. In aggregate, total rate increases amongst rate classes will result in an overall required 10.4% increase in revenue.
For residential members (General Service Small), the service availability fee will go from $33.22 to $38.32/month. MPE’s fee will be comparable to the current 2024 fees of other Colorado co-ops with similar mountainous terrain, such as Yampa Valley Electric at $45 and Gunnison County Power at $38 (2025 fees not yet available). The kilowatt-hour charge will change in February from $0.11737/kWh to $0.12690/kWh.
The income-qualified financial assistance pilot program – BOOST (Benefiting Our Own in our Service Territory) – will also take effect on Feb. 1. MPE is partnering with Mountain Family Center, which provides services throughout Grand and Jackson counties, to qualify members who may be at or below 200% of the Federal Poverty Level. Eligible members will receive a 20% discount on their monthly bills. Eligible members who enroll in MPE’s prepay program will get an additional 5% discount, for a total discount of 25% monthly. The pilot will run through June 2026. More information will be available soon at MPE and the Mountain Family Center.
Read the complete November 2024 Board Meeting Bulletin...
Archive of Board Meeting Bulletins
November 14, 2024 Board Meeting Bulletin
October 10, 2024 Board Meeting Bulletin
September 12, 2024 Board Meeting Bulletin
August 8, 2024 Board Meeting Bulletin
July 11, 2024 Board Meeting Bulletin
June 13, 2024 Board Meeting Bulletin
May 9, 2024 Board Meeting Bulletin
April 11, 2024 Board Meeting Bulletin
March 14, 2024 Board Meeting Bulletin
Feb. 8, 2024 Board Meeting Bulletin
Jan. 11, 2024 Board Meeting Bulletin
Dec. 14, 2023 Board Meeting Bulletin
Nov. 9, 2023 Board Meeting Bulletin
Oct. 12, 2023 Board Meeting Bulletin