Why are electricity prices increasing?
The price Cass County Electric Cooperative (CCEC) pays to purchase electricity from Minnkota Power Cooperative (MPC) is increasing and as a result, the price of electricity for CCEC members is increasing too. Retail electric rates will increase approximately 10-15% in 2011 depending on the member’s energy use and their electric rate. The rate increase will likely begin late spring.
This is why MPC’s price is increasing:
▪ MPC has invested over $420 million, over the past three years, in their power plants to reduce harmful emissions. This is mandated by the Environmental Protection Agency (EPA). Also, further investment is needed in support systems and electrical infrastructure to operate the emission controls. Operating and maintenance costs (including fuel), along with interest and depreciation, have added about $41.6 million to MPC’s cost base since 2009. Read more.
▪ In addition to increased expenses to run its own facilities, significant pressures have been applied to MPC’s costs as a result of low power market conditions. MPC currently has a significant surplus energy in its system due to decreased energy sales and long-term contracts it has in place with other utilities and wind energy developers. Read more.
Purchased Power Adjustment (PPA)
In order to accommodate variations in the cost of wholesale power, a purchased power adjustment (PPA) will be made to the monthly charges for all energy (kWh) sold by the Cooperative to each member (or other customer) of the Cooperative. More about PPA.
What can you do?
Being energy efficient and conservative when using energy are the best ways to combat rising energy costs. Visit TogetherWeSave.com or ask us about an energy audit; call 701.356.4400.