December 9, 2024
Effective January 1, 2025, Southwest Public Power District will implement an overall 2.4% rate increase to the customers of the District. During the Southwest Public Power District board meeting held on November 20th, 2024, management with help from a third-party rate consultant, presented to the Board of Directors a current Cost of Service study. The Board of Directors reviewed the study and approved the new retail rates as recommended by management. Over the past 12 years, SWPPD customers have received safe and reliable electricity without experiencing an overall annual customer rate increase in energy usage. In fact, since 2019, a Power Cost Adjustment (PCA) credit has been passed through from our energy provider making kilowatt hour (kWh) rates even cheaper than they were twelve years ago. Aside from a customer charge increase on single phase service in 2022, this will be the first increase in kWh usage since 2013. Over this same period of time, inflation has risen by 33% with the majority of these increases coming in the past 4 years. Since 2022, we have seen an increase of between 30% to more than 100% in the costs of material items such as wire and transformers. We are also forced to keep more material on hand since it is taking longer to acquire those materials. These increases are the driving force that continues to pressure the District to maintain our financial integrity while at the same time, supporting the necessary maintenance and upgrades of the electric plant. Some projects have even been delayed in an effort to reduce costs, but that is proving to be only a short-term fix. A recent study from Cooperative Electric Energy Utility Supply Inc (CEEUS) shows that over the last 4 years, transformers are 99% more expensive today. Conductor has increased 62% while crossarms and poles cost over 103% more today. . Southwest Public Power District has been able to cope with rising inflation and expenses while still maintaining rates well below the national average. This has been accomplished by an extremely good working relationship between the employees of SWPPD and the Board of Directors keeping well informed and making sound educated business decisions in an effort to maintain the primary purpose for the establishment of SWPPD: to bring safe-dependable-affordable power to our customers. Although no one likes to see the cost of their utilities increase, it is crucial for SWPPD to continue to meet our financial goals and provide you with safe and reliable electricity. The new rates can be viewed on our website at www.swppd.com/rates-payment. If you have any questions, please do not hesitate to contact us at (308)285-3295.