CEC announces electric rate hike

Central Electric Cooperative will boost its overall rate for all customer classes 20.3 percent, effective with the October billing.

According to CEC officials, the rate hike was brought on by a 56 percent wholesale rate increase imposed by the Bonneville Power Administration

Al Gonzalez, president and chief executive officer of the Redmond-based utility, said the co-op regrets imposing the rate increase -- its first since 1984 --but that it had no other option.

"The 'good old days' of infrequent and relatively small rate increases from BPA are probably gone forever," Gonzalez said. "Extreme price fluctuations in the cost of electricity will be the order of the day for as far into the future as anyone in the electric utility business can see."

The new rate structure, which was ratified by the co-op's board of directors after joint meetings with the co-op's Rate Advisory Committee, calls for a 23.3 percent increase for its average residential customer, a 9.9 percent increase for its average commercial/industrial customer, and a 42.3 percent increase for its domestic irrigation customer.

A new rate for agriculture irrigators will be established next spring.

Gonzalez warned that the new rate could be in effect for as little as six months.

"Our new 10-year contract specifies that BPA is entitled to adjust its rates up or down every six months.

"Given water conditions and other factors, we wouldn't be surprised if rates went up again in the spring," he said.