The most recent electric rate study for the Town of Estes Park’s Power and Communications, the sole electricity provider in the Estes Valley, recommends 5% increases in electric rates annually through 2026.
Last year, a stop-gap increase of 5% in electric rates across the board was a precursor to the completion of the study conducted by NewGen Strategies and Solutions.
They were hired to sift through the myriads of data involved to determine all the costs to provide electricity to customers within the utility’s service area, and how those costs should be distributed among customers.
“What we’re going to talk about today is about fixed costs associated with operations and maintenance,” said the Town’s utility director, Reuben Bergsten, at the study session on April 22.
Bergsten explained that ideally, the fixed monthly fee that all electric customers pay should be structured to recover the costs to maintain each account, but right now it doesn’t.
“So that is what we’re doing in this step,” Bergsten said. “When we go through and start designing rates, allocating the different costs to the different customers. Right now, all of the residential customers kind of look the same.”
He also noted that doing rate studies is expensive, so he asked the Trustees to consider “a three-year rate increase so we don’t have to do a rate study every year.”
The synopsis of the study recommendations includes the following:
- A 5% increase every year, 2024-2026. For 2024, it was across the board, affecting all electric rate classes
- For 2025 and 2026, the rate structure will be reviewed and adjusted among the various rate classes.
- Implement frequent and small increases to create predictability and avoid “rate shock.”
The next steps include public outreach in various neighborhood meetings. They have been conducted in Glen Haven and Allenspark already, said Bergsten.
A notice was included in this month’s utility bill, saying the Town Board will review the proposed electric rates on June 10 and 24 during its regular meeting.
On May 13, the Town Trustees will hear about this again, to formally set the public hearings on the rate increases for next month.
The Town of Estes Park is one of four member municipalities that own Platte River Power Authority, its wholesale energy provider.
The costs associated with PRPA generation and transmission are passed on to the customer under the wholesale power rider, listed on the utility bill.
The customer’s usage is also included in the bill and varies. However, the “customer cost” line item is virtually the same for all residential customers, whether grouped in neighborhoods with easy access to town infrastructure or if the customer lives in a more remote location.
Trustee Mark Igel asked about the turnout at the Glen Haven and Allenspark public meetings; Joe Lockhart, line superintendent for the Town, admitted very few people were there.
“Community engagement is very difficult,” Igel said, noting that the commentary on social media after any kind of rate change indicates that some constituents have no idea these changes are coming down the pike.
“I’m interested in feedback,” he said. “I want to hear from people if they don’t like it, and what else we can do about it? Do we have to sell a bucket truck? Do they want that compromise in service? So, I want to hear from people. I don’t want to just talk to people.”
Trustees Kirby Hazelton and Cindy Younglund said if people understood what would be lost if the rate increases didn’t happen, things like no more Christmas lights downtown, or decreases in service and reliability, rate increases would make more sense to the individual.
Bergsten said Estes Park Power and Communications was recently ranked in the top 25th percentile of public power providers by the American Public Power Association.
The next Town of Estes Park Board meeting will be held on Tuesday, May 13 at 7 p.m. in Town Hall, 170 MacGregor Ave.