Lane Electric Moves To Inclining Block Rate

Posted: January 03 2012

Lane Electric Moves To Inclining Block Rates in January 2012

Eugene, Oregon – January 3,2011 – On the heels of a one month, 21% rate decrease to its members in December, Lane Electric (LEC) introduced a new inclining block rate design on January 1, 2012 whereby LEC member’s electric bills will reflect a two-tier rate structure, with a seasonal component.

The new rate design incorporates two “tiers” or “blocks”. The first block includes all consumption up to 1500 kilowatt-hours (kWh). The second block includes all consumption above 1500 kilowatt-hours, and is priced higher than those kilowatt-hours captured in the first block.

The “seasonal component” incorporates different rates per kilowatt-hour based upon different seasons.  Kilowatt-hours consumed in the winter season when energy use is generally higher, are priced lower than kilowatt-hours consumed between May and October, when consumption is typically less.

“Our new 20-year power contracts with the Bonneville Power Administration (BPA) are different than those of the past”, says General Manager, Rick Crinklaw.   “For over 70 years, our cost per kilowatt-hour from BPA was consistent - hour by hour, day or night.  Today however, our new contract with BPA incorporates a multi-tier structure with power prices that vary on an hourly, daily and seasonal basis.”

Often referred to as a “conservation” rate design, inclining block rate structures reward members for operating their homes more efficiently and using electricity more wisely.

“Different than in years past, Lane Electric now receives an annual fixed allocation of power from BPA based a 1500 kilowatt-hour energy bill, on average, per member, per month.   If our members exceed this allocation, the cost to meet their need and acquire additional energy is more expensive”, Crinklaw says. 

Winter Rates:  (November through April)

     1 – 1500 Kilowatt-hours:                $0.0800 / kWh

     1501 and above:                            $0.0845 / kWh

Summer Rates:  (May through October)

     1 – 1500 Kilowatt-hours:                $0.0820 / kWh

     1501 and above:                           $0.0865 / kWh

1800 Kilowatt-hour Electric Bill Comparison:

       Flat Rate:                                  $161.60      

       Inclining Block Rate (winter):       $159.35      

       Inclining Block Rate (summer):    $162.95

Lane Electric’s 2012 budget process has been completed and Lane Electric does not foresee the need to raise electric rates in 2012.

Lane Electric Reduces Rates 21%, For One-Month Before Year’s End

Posted: October 31 2011

Lane Electric Reduces Rates 21%, For One-Month Before Year’s End

Eugene, Oregon – October 31,2011 – At Lane Electric Cooperative’s October board meeting, the board of directors unanimously agreed to reduce electric rates 21% for one month.  As a result, Lane Electric members could see a $33 savings on their December electric bills.

Colder weather this year, coupled with higher energy use and lower than expected expenses made this rate decrease possible for Lane Electric’s members.  “As we near the end of the year, Lane Electric finds itself with higher margins than expected’, says Rick Crinklaw, Lane Electric’s General Manager.

“Our cost for purchased power was lower than we expected and it made a significant difference in margins”, notes Crinklaw.

“Given this development, the overall financial strength of the co-op, and the current economic condition, the board of directors voted to implement a one month rate decrease for Lane Electric’s members before the end of the year.  Returning these excess dollars back to our members in the form of a rate decrease is the right thing to do”, says Crinklaw.

Lane Electric is currently preparing their 2012 budget for board consideration in November.

LEC Directors Reelected and Bylaw Amendments Supported

Posted: October 27 2011

Lane Electric Members Reelect Directors and Amend Bylaws at Annual Meeting
 

Eugene, Oregon – October 27, 2011 - Lane Electric Cooperative held their annual meeting on Monday, October 24, 2011, at their headquarters at 787 Bailey Hill road in Eugene, Oregon.  Election Referee and Co-op member, Martha Shearer announced at the annual meeting, that Central Director, Charles J. Leighter, McKenzie Director, Patricia C. Dymock and Oakridge Director, James W. Hill, had retained their seats on Lane Electric’s board of directors and all five proposed bylaw amendments were passed by a vote of the membership.

Central Director, Charles J. Leighter, McKenzie Director, Patricia C. Dymock and Oakridge Director, James W. Hill, were reelected and will continue to serve Lane Electric’s board of directors and membership.  The three directors have completed all of the required coursework and have been certified as credentialed directors by the National Rural Electric Cooperative Association (NRECA).

For the coming year, Director Jeri Nelson, Oakridge District, will continue to serve as board president, Director Loy Sparks, Central District, will serve as vice-president, Director Patricia C. Dymock, McKenzie District, will act as secretary and, and Director Charles J. Leighter, Central District, will serve as the cooperative’s treasurer.