The upcoming rate increase is only the second for MPE in 9 years. There were no rate increases for the 7 years between 2016-2023.
A cost-of-service study and proposed rate design was 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.
The rate increase will take effect on February 1, 2025.
Since 2016, operational costs resulting from inflation have also gone up by an average of more than $1.8 million annually, or 13%. From 2020 to 2021 alone, MPE’s non-power supply expenses jumped 7.5% due to the skyrocketing costs of materials and supplies.
To help mitigate future anticipated rate increases, MPE has spent the last 2 years exploring alternate power supply options. In January 2023, MPE provided Tri-State the required 2-year notice to terminate its wholesale power contract, effective Feb. 1, 2025. MPE has secured a more stable power purchase agreement with Guzman Energy to follow its exit from Tri-State.
The average residential electric bill will increase by approximately $11.77 monthly.
The average residential kWh usage over the past 12 months is 700 kWh/month.
At the current rate: $0.11737 x 700 kWh = $82.16 + $33.22 SAF = average monthly bill of $115.38.
At the new rate: $0.12690 x 700 kWh = $88.83 + $38.32 SAF = $127.15.
In aggregate, total rate increases amongst rate classes will result in an overall required 10.4% increase in revenue. Individual rate classes will be impacted differently. The remaining rate classes were finalized and the Board approved proposed revisions to Tariff Section II: Rate Schedules at the Dec. 12 meeting.
MPE’s new residential electricity charge of $0.12690 kWh, to become effective Feb. 1, 2025, is well below both the Colorado electric utility rate from September 2024 of $0.15030 kWh and the national average from that same month of $0.1683 kWh. (data from U.S. Energy Information Administration)
A new rate discount program has been created for those who may be disproportionately impacted by any rate changes. 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 info to be available soon at MPE and the Mountain Family Center.
MPE will continue to share with its members tips on how to save energy, cut costs and find energy assistance resources for those in need. Below are links to assist with energy efficiency/management:
MPE’s Rebate Program is changing in 2025, but will continue to offer cost-cutting opportunities, including new rebates for electric heat tape and home insulation: www.MPEI.com/REBATES
We are a consumer-owned electric cooperative, here to serve you. For additional information, please call our customer service department at (970) 887-3378, EXT 3.
