Welcome to the section of our newsletter where we take a closer look at power supply, what goes into it, questions worth considering, and the many factors that shape the long-term reliability and cost of electricity for our customers.

How are power supply costs determined? 

Wheat Belt PPD's power supply costs are based primarily on wholesale electricity and the services required to deliver it safely and reliably. These costs include the energy our customers use, capacity reserved for peak periods, transmission, substations, fuel and market adjustments, generation investments, and regulatory charges. We carefully combine these expenses with the cost of operating and maintaining our local distribution system and allocate them across customer classes as fairly and equitably as possible. 

What factors influence electricity costs? 

Electricity costs can change for several reasons, but Wheat Belt actively monitors the factors that affect rates. These include usage patterns, particularly demand during peak hours, as well as fuel and wholesale market prices, dependable generating capacity, transmission charges, weather, inflation, interest rates, labor and material costs, environmental and reliability requirements, and investments in generation and the grid. While some influences are outside our control, we plan carefully and manage the factors we can to help keep service reliable and costs as stable as possible. 

Why have wholesale power costs increased? 

Wholesale power costs have increased because of inflation in equipment, construction, labor, and plant maintenance; higher projected market, fuel, and contracted-energy costs; state and federal regulatory changes and requirements; new transmission and reliability requirements; and the need to secure dependable capacity as regional demand grows. Wheat Belt is responding by carefully evaluating long-term power supply alternatives that can improve rate stability and cost control while preserving reliability. Every option is being reviewed with our customers' long-term interests in mind. 

How do infrastructure investments affect energy costs?

Infrastructure investments help ensure customers continue receiving safe, dependable service. Generation, transmission, substations, poles, wires, meters, technology, and even cybersecurity all require ongoing care and improvement. Although these projects can add costs through financing, depreciation, and operations, timely investment also helps prevent outages, improve efficiency, support community growth, and avoid more expensive emergency repairs.