December 27, 2022 - Two rate changes are set to take place in early 2023 due to increased wholesale power costs and the continued increases in cost of necessary materials and equipment.

The first change, regarding LCP’s load management program rates, will be effective on January 1, 2023. This rate per kilowatt hour (kWh) adjustment is a direct result of Great River Energy’s wholesale price increases for these programs. Energy Wise programs including dual fuel, off-peak, water heating and electric vehicle charging, will be impacted (see rate table below).

Secondly, a general service rate change for both residential and commercial members has been approved by the board of directors at the December 22, 2022, regular board meeting. This change will go into effect on March 1, 2023. The approved rate change will result in increases to the monthly Service Availability Charge (SAC) as well as the kWh usage rate.

“Due to significant increases in the cost of materials, raising the SAC is the fairest way for all members to meet the needs of the budget,” says Mark Bakk, LCP general manager. “The costs associated with maintenance of the system including materials, line maintenance, and right-of-way clearing should be borne by all members.”

In addition to adjusting the SAC, an increase in the per kWh energy rate is also necessary. This increase is mainly due to the elevated cost of natural gas which is driving up market energy prices around our region. The increased cost of energy purchases should be paid by those members who use the energy. Together the two rate changes will provide the required revenue to meet the cooperative’s needs in 2023.

“We have experienced historical cost increases in virtually every aspect of our operations over the past two years; especially related to essential materials for our distribution system.” said Chief Financial Officer Tracy Peterson Wirtanen. “We do everything we can to control costs in an effort to maintain rates for our members.”