Leaders Discuss Issues Impacting Future Rates

Raft River members celebrate 85 years at annual meeting

Story and photos by Dianna Troyer

Raft River Rural Electric Cooperative Inc. had smooth sailing financially during the past year, board of directors President John Campbell told members at the 85th annual meeting in March.

Despite uncertainties and political issues in the electric industry, rates were stable. John reviewed the results of a member survey.

“Overall, 93% of respondents feel the utility has exceeded expectations,” he says. In other major issues, 55% of respondents would like more information about eventually having a new facility in Malta. Concerning inevitable rate hikes, 72% of respondents said they would like them increased incrementally.

The co-op provides electricity and also supports the communities through numerous donations and grants.

“The co-op provides scholarships and donates to FFA, 4-H, the ICUA youth rally, the food pantry and park in Jackpot,” John says. “We also provided matching grants to emergency medical services, the fire district, and the school in Malta when a sound system and new track were needed.”

Michael Burton, from the accounting firm DeCoria & Co., says the co-op’s financial records comply with standard accounting practices.

“After doing the annual audit, I can assure you the financial statements are accurate,” he says.

Past Highlights, Future Issues
General Manager Chad Black says the co-op has enjoyed “another excellent year of success and financial stability.”

This success allowed the board to retire $1.5 million in capital credits, retiring patronage from 1995 and part of 1996.

Last year, the co-op’s wholesale power costs were reduced substantially due to the Bonneville Power Administration selling excess energy.

“With these savings, we stated a higher than-normal operating margin for the year, allowing us to pay out the patronage and make some significant capital investments in three substation power transformers,” Chad says. “The availability and delivery of transformers, conductors, poles and other critical equipment are being delayed and are seeing cost increases of up to 300%. I want to express my appreciation to the employees of RREC for their proactive approach in meeting these challenges.”

Though the cost of maintaining the system has increased, rates have remained level. A rate increase in 2018 was projected to last for three years before adjustment, but has held steady.

“We are now approaching our seventh irrigation season since that rate increase,” Chad says. “We will not be able to hold rates steady forever.

Every year we can hold off increases, especially with all the increased cost pressures, is a fortunate occurrence.”

Raft River’s BPA contract will expire in 2028. The board is exploring options for the future.

“BPA is planning on offering long-term contracts in late 2025 with the goal of being a provider of choice as they already provide most of the wholesale power at cost-based rates to public power utilities across the Pacific Northwest,” Chad says.

BPA is dealing with political issues that will impact availability of reliable affordable electricity in the future. Oregon and Washington politicians have mandated that a certain amount of electricity be produced from renewable energy, including wind and solar projects.

“We all need to be aware of the pending energy crisis we face if the retirement of effective baseload resources, such as coal, continues to be replaced with intermittent resources which must be backed up, so when the sun sets, and the winds stop, our power supply does not,” Chad says. “They must be coupled with reliable resources, such as hydro, coal, natural gas, geothermal and nuclear.”

He provided an example. During unprecedented cold weather in January, solar and wind projects produced minimal electricity in the Northwest.

“Demand for electrical heat climbed to levels not before seen on the BPA system, reaching a daunting peak of 13,267 megawatts on the morning of Saturday, January 13,” he says. “The four lower Snake River Dams contributed more than 1,000 average MWs to the system at this time. Their flexibility makes them invaluable during events like this.”

To advocate for reliable affordable electricity, RREC relies on its membership with PNGC Power, a generation and transmission cooperative representing 16 utilities with service territories in seven western states.

PNGC Expertise
Special guest Connor Reiten, vice president of Government Affairs at PNGC, told members it is remarkable RREC rates have remained level for several years.

“That’s not the case for those of us who get power from an investor-owned utility,” he says. “In Portland where I live, my electric rates have increased 40% in the past three years.”

A political issue concerning future electrical supplies is the proposed removal of four dams on the lower Snake River. The plan is favored by four Native American tribes and Washington and Oregon politicians who claim the dam demolition will improve salmon populations. Representatives from electric utilities and agriculture were intentionally excluded from the final stages of the decision-making process, Connor says.

“We will not abide by this, and a lawsuit has been filed in the 9th Circuit Court of Appeals to contest the decision,” he says.

In other business, Thomas Harper encouraged teens to apply for the ICUA Youth Rally in July at Northwest Nazarene College.

Thomas will attend as a returning director. At last year’s rally, he was chosen to represent Idaho at the NRECA Youth Tour in Washington, D.C. in June.

“I’m very thankful to those who make the Youth Rally happen every year,” Thomas says. “I learned so much, especially how a good leader helps people reach a decision.”

Other announcements included:
• Winners of the $2,000 education grants were Jentry Hawker, Heidi Harper, Kylie Kunzler, Mackenzie Ledbetter and Sadee Sears.
• In the board of director’s election, incumbent Sherrie Erickson, District 2, was reelected and Shawn Burt, District 4, was elected.
• Alan and Beverly Harper won the grand prize, a smart TV.

Chad thanked members for coming to the meeting. He also thanked employees and board members for their dedication to their jobs and to members.

“It’s rewarding to be a part of RREC’s mission—to provide safe, reliable, cost effective energy and exceptional member service,” he says. “It’s an honor to be a part of this organization.”