In October, Powder River Energy Corporation saw a 13-percent increase in the cost of the wholesale power it purchases from Basin Electric Power Cooperative and distributes to its members. TEST
PRECorp strives to manage costs while providing high-quality and reliable power. The cost of the power it purchases from Basin and delivers to its members is by far the greatest expense the cooperative has every year. PRECorp uses a rate mechanism known as the Cost of Power Adjustment (COPA) to manage the impact of changes in cost of power. It’s important to remember that the COPA only recovers the cost of power purchased from Basin, and therefore a change in the COPA is appropriate when Basin changes its own rates. While PRECorp’s Board of Directors chose to absorb the increase for the last three months of 2011, it was necessary to employ the COPA mechanism to ensure that PRECorp recovers the cost of power it purchases in 2012.
An application for the 2012 Cost of Power Adjustment was approved by the Wyoming Public Service Commission on Tuesday, January 10, and is now in effect.
