2025 Power Cost Adjustment
UPDATED November 1, 2024:
PRECorp’s wholesale power supplier Basin Electric will implement a 6.5% increase in the cost of the power it sells to PRECorp beginning in 2025.
This amounts to an increase of $4 per megawatt hour (MWh) of power PRECorp purchases from Basin. Annually, PRECorp purchases approximately 2 million MWH of electricity from Basin.
PRECorp residential members using an average of 1,200 kilowatt hours (kWh) per month will see an average increase of $6 to $8 on their monthly bill starting in January 2025.
Basic details:
- The rate proposal requires final approval by the Basin Board at its August meeting.
- PRECorp will calculate the impact on individual members' accounts by the end of August or early September.
- The member impact will vary due to the Cost of Power Adjustment (COPA) factor – the methodology is published in our tariff sheet.
- We have decided to share this information with our members even though it still needs approval and may change. We want to give as much notice as possible before the increase takes effect.
Why now?
The increase is tied to Basin’s long-term efforts to increase its electric generation and distribution resources amid rising demand for power in the central and western United States.
“Basin is responding to pressure to meet demand for power from growing industrial and residential areas in its service territory,” said PRECorp CEO Brian Mills. “Pair that with regulatory pressure to close down its coal generation fleet, Basin is working proactively to add alternative generation and distribution systems so they do not have to purchase power on a competitive open market.” Mills said the long-term benefits to Basin’s members are rate stability as the wholesale power supplier works to control its own generation and pricing structure. Basin’s generation mix includes coal, natural gas, wind, and solar. While coal generation has remained relatively stable, the demand for more electricity from Basin’s industrial members and data computing centers has increased dramatically since the beginning of this decade.
Why is PRECorp included?
Annually, PRECorp purchases approximately 2 million MWH of electricity from Basin.
Basin, an electric generation and transmission cooperative, is not owned by shareholders. Instead, Basin’s member cooperatives hold a financial stake in the company and, therefore, invest through rates and, over time, receive capital credit returns or dividends on those investments.
What is PRECorp doing to lessen the impact?
“The cooperative model of capital credits and the financial strategy of deferred revenue has enabled Basin and PRECorp to lessen the impact of this rate increase,” said interim PRECorp VP of Accounting and Finance Abby Olson. “We were able to save up these dollars from previous years and leverage them to ensure this increase has less of an impact in 2025. Those funds bought us some time so that members can prepare for the increase to hit their bills later in the year when usage is lower.”
“We understand any increase impacts every member whether they have high power usage or not. The last rate increases were in 2016 and 2020. This is a time for members to consider PRECorp’s variety of programs to help control usage and costs,” Mills said.
Resources:
Members with specific questions about the impact on their monthly cost, can call PRECorp Member Service at 1-800-442-3630.
PRECorp CEO Brian Mills will also answer questions during a live telephone town hall meeting on Thursday, November 21, at 6:30 p.m.
PSC Filings
Look here for updated filings with the Public Service Commission related to the 2025 Power Cost Adjustment.
Rate Calculators
- Calculate and compare the changes from current rates to the proposed rate increase in 2025.
Rate Comparisons
- See how PRECorp's rates compare to electric utilities in Wyoming and the region?
Q&A
- Get more information about the 2025 Power Cost Adjustment.
Ask a Question
- Email us any questions you might have about the 2025 Power Cost Adjustment.
PRECorp offers the following to help members with individual needs:
Heat Rate offered across rate classes
On the monthly billing statement, the Residential Heat Rate and the Non-Residential Heat Rate options will be combined into one Heat Rate option and simply be referred to as the Heat Rate. This requires breaking out the single basic charge Heat Rate participants see today into two basic charges – one for your main meter based on the rate class of your account, and one for the heat rate meter.
Time of Use program
Our Time-of-Use Rate option is one more way we continue our promise to provide members with affordable rates and options that fit their individual energy needs. The concept behind this program is fairly simple: rather than a single flat rate for each unit of energy used (e.g. kWh,) you pay different rates for the electricity you use based on the time of day and season. Under this voluntary rate option, when you consume electricity is just as important as the amount of electricity you use.
On Time-of-Use, rates are lower during evenings and overnight because of the decreased demand for electricity during those times..To help lower costs, you can shift energy use to off-peak periods (when electricity prices are lowest). Our Time-of-Use Rate also changes seasonally, because electricity demand differs between summer months and the rest of the year. These rates can make a big difference for members particularly in the areas of heating and cooling; major appliances; and water pumping equipment.