Wheatland to Pass on Power Cost Savings
Members Could Save as Much as $5 Million
As a result of your locally elected Wheatland board of trustees' efforts to encourage and support strategies that seek to mitigate the costs of wholesale power, Wheatland expects to see an 11 percent decrease in power costs from one of its wholesale power suppliers, Sunflower Electric Power Corporation, in 2015.
In 1948, at a time when the rural areas of Kansas did not have access to electricity like their urban neighbors, you, our members formed Wheatland Electric. For 66 years we have been steadfastly committed to the mission of providing reliable electricity at a competitive price to our members. Our goal in keeping to that mission is to protect the way of life you value. We know your access to affordable, reliable energy is essential to meeting the needs of your family, business and community.
As a cooperative, Wheatland is governed by a democratically elected board of trustees. The board is made up of members just like you, some of them your friends and neighbors, who work together for the good of the cooperative. One of the many jobs of your member-elected board is to advocate on the behalf of the membership for lower wholesale power costs from our wholesale power suppliers, Sunflower Electric and Mid-Kansas Electric.
These wholesale power costs impact your monthly electric bill in several ways, one of which is the Power Cost Adjustment Charge (PCA), which makes up the largest percentage of a monthly bill. The PCA includes the costs of generating and purchasing power, as well as the cost of transmission needed to deliver power from our power suppliers to Wheatland, and ultimately, to you.
Wheatland anticipates the power costs from Mid-Kansas to remain stable in 2015. Mid-Kansas has a number of planned generation and transmission projects that will serve to further improve reliability to the Mid-Kansas system. The expense of these welcome improvements prevents Mid-Kansas from passing through a rate reduction; however, the improvements are not expected to put increasing pressure on power cost rates.
Wheatland plans to pass these Sunflower power cost savings on to Wheatland members. The 11 percent decrease should put close to five million dollars in savings back in the pockets of our members. A member with an average electric bill of $150, would see savings of $16.50 a month for a total of nearly $200 for the year.
While the savings associated with the Sunflower power cost decrease are expected to be 11%, fluctuating fuel prices and other variables that impact the PCA may vary the amount of total savings Wheatland members see in their bill over the course of the year. However, Sunflower and Mid-Kansas have implemented methods to help manage these fluctuations, such as owning a diverse fleet of generating resources and executing long-term contracts for fuel delivery.
We’re pleased to have been a part of making this power cost reduction for you happen. We want you to know that your locally elected board members will continue to speak on your behalf.