GCEA members to see increase in electric rates

Expect bills to increase by about 4 percent

By Alissa Johnson

If Gunnison County Electric Association (GCEA) provides your electricity, expect to see a small increase in your next energy bill. GCEA implemented a rate increase of about 4 percent, effective May 1.

The increase is expected to generate approximately $662,000 annually. About $100,000 of that will offset a rate structure adjustment by GCEA’s wholesale power supplier, Tri-State G&T, and the remainder is slated to help cover increased operating expenses and system improvements.

For a residential customer, the service availability charge is rising from $27 to $28 per month, and the energy charge per kWh is increasing from $0.11868 to $0.12355. According to Marcia Wireman, chief financial officer, the average monthly energy use per household in 2015 was 638kWh. Using that as a basis, she expects the average customer to see “a $4.11 per month increase based on a customer who uses 638kWh per month.”

And while the exact amount does vary depending on the type of customer, Wireman said the increase should be close to 4 percent across the board, based on 2015 usage.

Wireman pointed out that while fuel costs are low right now, other operating expenses continue to rise, including such items as regulatory compliance costs and property taxes. In addition, GCEA is continually working to improve an aging infrastructure; the oldest parts of the system date back to the 1940s and ‘50s.

“The current work plan puts a particular emphasis on line rebuilds and pole replacements in areas where extreme age, and in some cases difficult winter access, places the distribution system is at risk for failure and outages. System improvements are considered capital projects and the expense is spread over multiple years, so that members who benefit from the improvements pay for them,” Wireman explained.

This year, two significant projects in the work plan are a rebuild of aging line along Highway 50 between Highway 114 to the town of Parlin, and the replacement of aging overhead line and existing structure starting at the Skito Substation on Highway 50 and running west for 5.8 miles to Dickerson Pit.

That line “has seen numerous failures and upgrade will improve reliability,” Wireman said.

Upgrades have also been completed in the north end of the valley over the last few years. As part of a Crested Butte reliability project, including the Alkali Substation, GCEA increased conductor size and ampacity (the amount of electricity a conductor can carry) in Crested Butte and Mt. Crested Butte. GCEA also replaced several old underground lines in Mt. Crested Butte and rebuilt poles and wire in Crested Butte. All of these projects brought the system up to the new National Electric Safety code.

GCEA board member Chris Morgan emphasized that the organization only raises rates when it’s necessary to cover increases in the cost of providing electricity.

“As a not for profit, member-owned electric utility, GCEA always strives to keep costs as low as possible and only passes those costs onto our members when we absolutely have to…

“Gunnison County Electric Association realizes that energy costs are a significant expense for every single member of the system and is very sensitive in trying to keep those costs as low as possible because paying energy bills is tough on everybody,” he said.