Manager Connection: WMA Increases
General Manager Syd Briggs
As most of our members know, Steele-Waseca Cooperative Electric pass increases in the cost of power on to our members through the Wholesale Market Adjustment (WMA) for our legacy members and the Power Cost Adjustment (PCA) for our SMEC members who joined the co-op on July 31, 2015, following the closing sale of the former Alliant Energy service territory.
In 2025, our cost of power is expected to increase about 8.1%.
Since the cost of power is our largest expense, it is important we stay current with passing the cost on to our members; if we delay passing the cost on for several years, we end up with large increases in a later year rather than several small (hopefully) increases over several years. Many cooperatives and other utilities in Minnesota and across the nation are experiencing a similar situation.
With the forecasted usage of our residential class, their increase should average around 5.8% or about $10 per month, and the average increase in the whole system should be around 4.8%. We also are in year two of a five-year strategic plan to merge the legacy and SMEC rates where we can have just one set of rates system wide, and only one WMA or PCA.
Your Steele-Waseca board of directors and employees have been working very hard year after year to minimize expenses without sacrificing service, and the results have been excellent. Our expenses, other than the cost of power, have grown very little and stayed consistent with growth in energy sales.
In review, the projected percentage increase is for the average member system wide. The increase each of you experience will be determined on whether your usage is over or under the average.
It is important for our rates to collect as much of the actual costs as is applicable to each class of service. Most of our cost of service is collected in the energy charge, and we try to lessen that with a reasonable customer charge with as much balance as possible.
Steele-Waseca will continue to work hard to provide the best service and realize cost savings whenever possible. We also have an excellent section on our website, swce.coop, entitled, “REBATES/PROGRAMS,” that provide many ideas and links about efficiency and conservation. The rate adjustments are not large ones, and it will take effect on the bill you receive in February. Please feel free to call any of our customer service representatives if you have a question or need further clarification.
Trust
#swce/TRUST
