During a time when prices are increasing for goods and services across the country, Basin Electric is offering rate relief for its members.
On Aug. 10, Basin Electric’s board of directors unanimously voted to decrease member rates by an average of one mill. This rate decrease amounts to approximately $33.5 million in 2023 alone.
The board’s action to reduce rates comes just weeks after approving two other financial resolutions to return millions to its members. At its July meeting, directors authorized a $15 million bill credit on members’ July power bills as well as the retirement of $13.2 million in patronage capital credits. The bill credit was issued due to midyear consolidated financial results being better than budgeted. The patronage capital credits represent margins from 2005. These two actions will bring the amount returned to members since the year 2000 to over $630 million via retiring patronage capital credits and bill credits.
“All three of these board actions are a result of Basin Electric’s strong year-to-date financial performance, long-term focus, financial stability, and desire to return value to the membership,” said Board President Wayne Peltier. “They are a tangible representation of our commitment to our members past, present, and future. A perfect example of the value of being part of a cooperative family.”
Patronage capital credits represent value returned to the membership from their investment in the cooperative in previous years. A bill credit reflects a rate reduction on current year’s sales. The rate reduction is a relief for future member rate payers.
While the rate decrease will take effect Jan. 1, 2023, the patronage capital credits were distributed in late July and the bill credit will appear on the bill members receive this month.
