From a Director — Jeff Anderson May 2021
Rate Study Update
I have the honor of serving as chair of the Salem Electric Board Rate Committee with fellow board members Jerry Berger and Cindy Condon. Over the past several months we have met with staff and consultants to engage in a Cost of Service Study (COSS) to determine the future financial needs of the cooperative.
The Cost of Service Study is an extensive multi-month process that uses numerous data points including demand, load factor, and distribution minimum system design. It evaluates rate design options to achieve an equitable distribution of costs among different member classes and helps to identify Salem Electric’s true cost of providing service to our members.
The Rate Committee is working with COSS consultants to help determine next steps in the rate design process and agrees that Salem Electric must be able to recover its cost of service (cost to provide electricity) with rate adjustments phased in over 10 years.
The Rate Committee work is being done in tandem with the Bonneville Power Administration’s work on wholesale rates to be implemented in October of this year. We want to keep you informed as we go through this process and will continue to provide updates as they become available.
Our goal is to not only meet the financial needs of the cooperative, but to do it within the guidelines of our cooperative goals of reliable service, good customer relations, good employee relations, financial integrity, and low rates.