It's that time of year again when the Board of Directors reviews and approves rates in support of the coming year's budget. At the October 27th board meeting, Wheat Belt's rate consultant from JKEnergy Consulting presented findings from the Cost-of-Service Study. With the results of the study and Wheat Belt’s power supplier, Tri-State G & T, implementing an increase of 7.4% in 2024 to our cost of power, the Board of Directors approved the recommendation of a 3% rate increase beginning January 1, 2024, which will show up on your February 1st billing statement.
If it feels like Wheat Belt’s rates have been on the rise in recent years, it’s because they have. Here is a deeper look into why they have increased. Did you know Wheat Belt did not have an across the board, revenue rate increase in 2013, 2014, 2015, 2016 and 2017? Yet costs were steadily increasing. In 2018, the board approved a rate increase and provided guidance on a five-year rate plan including a slower, yet steady rate increase each of the following years. Additionally, during those years the Board of Directors committed to investing more dollars in the upkeep and improvements to the electrical plant to continue to provide reliable service to our customers, which also put pressure on the rates.
Let's look at how Wheat Belt's rate increases compare to inflation over the same time period. In 2017, Wheat Belt customers paid 12.28 cents per kWh, compared to a projected 13.3 cents per kWh in 2023. This is an 8.35% increase, or a 1.39% increase each year for the past six years. General inflation for the same period was 15.5% or a 2.58% increase each year. Although electric rates have increased, general inflation has outpaced Wheat Belt’s rate increases.
As difficult decisions are considered, deliberated, and voted on, Wheat Belt's Board of Directors is committed to the mission of delivering electricity safely, reliably, and efficiently through core values of respecting individuals, producing quality work, and valuing integrity.