Watts News
 Published for the members of North Itasca Electric Cooperative
VOL. 21 NO. 1  -  January 2018

CEO Report

continued

When you look through the highlights from the board room you will see some additional changes. We are forced to raise rates. This has consumed many hours researching, budgeting, and in the end making a decision that was fair for everyone who shares our system and the responsibilities that come with being a member-owner of our cooperative.

The basic service fee will be $46, the main meter rate will increase by $.0075/kWh, the typical general service rate will be at $.1249/kWh starting in January. We did not change any of the heat rates. We are working very hard to keep rates low for our member-owners. This increase came about because of the three-legged stool; our equity sits on top of the stool. We need to maintain a healthy equity percentage; what supports that are the legs of the stool. One leg is our work plan, what we are doing to replace old, undersized, or overloaded lines in the fieldÖ. Right now, we have roughly 3 percent of plant being replaced yearly. Second is depreciation. Our plant or the equipment in the field is deprecating at roughly 2 percent per year. Now we need to cover those two numbers to maintain our equity. This is where the revenue portion comes in. Our source of revenue comes from our member-owners from the kilowatt hours we use daily and the basic service charge. We are working very hard to keep these rates as low as possible while still meeting our fiscal responsibilities.

Thank you to everyone who came and visited at the open house on December 8th. I had the chance to meet so many people from the community. I was delighted to see Santa show up and visit with all the kids who stopped in to enjoy cookies, doughnuts, cider and a sleigh ride. Bigfork is a wonderful community to be part of!

Some of the kids were a little hesitant to visit with Santa, others ran right up to give him a hug. My favorite was the little girl who was very organized. When Santa asked her what she wanted, she promptly pulled a list out of her pocket, and covered everything on the list! I got more laughs and smiles thinking about the visit with Santa. I look forward to seeing you all next year.

I want to wish you all a Merry Christmas and a happy New Year! I hope you have time to get together with friends and family over the holidays. Iíll start brining my turkey this week so itís ready for Christmas dinner. My sister and her family will be up to join the rest of us this weekend. I hope to get a few hours out in the fish house, but weíll have to see how the weekend turns out. 24 hours just isnít what it used to be these days.

Happy holidays!

Brad




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