Wright-Hennepin Residential Rate Information
Updated rates help prepare for our energy future
Power Systems Engineering (PSE), a local consulting firm performed a study of all WH retail rates. Providing competitively-priced and reliable power is always our top priority. After extensive consideration of the study recommendations, the Board of Directors approved several rate changes in April of 2016.
The following are three changes to the components of your electric bill:
- Change to the basic monthly service charge
- Change to the general service rate
- Reduce the Power Cost Adjustment (PCA)
Here are a few key elements of our plan:
- We expect to continue to beat Xcel Energy on energy costs annually for those members who use about 1,000 kilowatt hours per month.
- We plan to change the basic monthly service charge by a little over a dollar a month from the current $8.25 to $9.35.
- This increase will be offset by gradual reductions in the PCA portion of your bill. This will help make the electric bills more stable.
- We anticipate the average residential member's bill will increase by about 4.5 percent in 2016 and increases in the out years are predicted to be within WH's historical range.
When compared with all Minnesota cooperatives, WH’s basic monthly service charge is among the lowest 10 percent. The 2016 rate adjustments tally to an average increase of approximately $5-$6 per month, or roughly 20 cents per day. And while wholesale power costs have increased 35 percent since 2008, WH has held the line on operating expenses (see Graph). Our distribution costs are lower than the vast majority of cooperatives in the state and nation, and lower than most systems our size.
Still, 70 percent of our costs come from power supply, most of which we purchase from Great River Energy and Basin Electric Cooperative. Cost pressures on these generators will only increase as they try to adapt to the EPA’s new Clean Power Plan and other significant changes in energy markets. WH is spreading these increasing costs over the same number of sales as in 2008. We’d love to tell you that rates will stay flat, but they are going to increase. Our job is to control those costs as much as we can at the co-op, while giving you additional tools to control your costs. Our Energy-Saving Programs, MyMeter tool, Co-op Connections Card, community solar arrays and new rebates for energy-efficient technologies are prime examples of how you can save energy and money.