NOTICE TO MEMBERS OF BEARTOOTH ELECTRIC COOPERATIVE
January 5, 2021
The Beartooth Electric Cooperative (BEC) Board of Trustees hereby notifies co-op members that it will be voting on proposals to adjust rates for the irrigation rate class at the February 23, 2021, Board meeting.
Over the years, BEC’s Cost of Service Analysis (COSA) results have consistently shown that irrigation class revenues, unfortunately, fall short of meeting the costs to serve this class. However, the total amount of revenue shortfall has varied with each COSA. The latest report shows that irrigation revenues need to be increased by about 25% to equal the full cost of service. In a first step effort to better align revenues with costs, the Risk Management Committee recommends that the board implement a 5% irrigation rate increase effective April 1, 2021. In addition to rate fairness across rate classes, the committee also looked at rate fairness within the irrigation rate class. It recommends the following changes to better align charges with usage: 1) 12-month billing, 2) 3-tiered base rate system, 3) slight decrease to the energy charge (kWh), and 4) slight increase to the system charge (kW) along with the introduction of a minimum system charge (kW). Going forward, the Irrigation rate design will be reviewed each year to determine the progress made toward assuring that the Irrigation class is paying its full cost of service.
May 11, 2020
The Beartooth Electric Cooperative (BEC) Board of Trustees hereby notifies co-op members that it will be voting on proposals to adjust rates for all customer classes at the June 30, 2020, Board meeting.
These proposed rate adjustments are the result of a rate design review process conducted by the Board and BEC’s Risk Management Committee that has been underway since October 2018. The proposed rates are not intended to generate additional overall revenue for BEC. Rather, the proposed rates are designed to produce the same amount of revenue from each customer class as the current rates assuming normal weather conditions.
January 17, 2020
The BEC board of trustees hereby notifies co-op members that to meet the financial impact of NorthWestern Energy Corporation’s (NWE) 53.8% transmission rate increase, a proposal to implement a cost pass-through revenue increase of 2.8% ($250,000) by raising BEC’s electric rate $0.003616/kwh on all rate classes (residential, small commercial, large commercial, industrial and irrigation), effective March 1, 2020, is under consideration.
Articles of Interest:
- FERC Order Scheduling Settlement Conferences August 2019 (PDF)
- FERC Response TO NWE OATT Filing (PDF)
- FERC Interverntion Process (PDF)
- BEC OATT Intervention
July 25, 2017
Securing a two-year loan with CoBank for deposit into the RUS Cushion of Credit account was approved by the board at the July 25, 2017 board meeting. The board also voted to consider an additional loan from CoBank for an additional three years for deposit into the RUS Cushion of Credit account.
June 29, 2017
The board issued a June 29, 2017 60-day notice to members of proposals for power contracts exceeding two years. BEC notified co-op members that the contract with Montana-based Energy Keepers, Inc. (EKI) includes an option to extend the contract for three additional years, through September 30, 2027. In early September the two-year contract with Energy Keepers was replaced with a five-year contract. Its term is Oct. 1, 2022 through Sept. 30, 2027. It is a fixed-rate, load-following contract.