Lake Region Electric Cooperative
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DSM Rate Change
As outlined in last month’s newsletter, Great River Energy (GRE), LREC’s power provider, informed us that there will be a demand side management (DSM) rate increase effective January 2023 due to price increases for natural gas and the MISO markets. We continue to work with GRE to find the best options available to address the price increases for natural gas and the MISO markets. These are uncertain times no question, but I want to assure you that we will work tirelessly with GRE to find the best options available to address the price increases for natural gas and the MISO markets.
This DSM rate change will affect our dual fuel members. I personally am a dual fuel member. DSM rates, and therefore costs, will increase next year but I know that electricity will remain a good value. Although my costs will increase, it still should remain lower compared to propane. For reference, I did a summer fill at $1.80 and recently locked into a winter contract refill price at $2.10 per gallon for propane. As soon as the DSM rates are finalized by GRE, and as soon as the LREC Board approves our retail DSM rates, we will publish them for you.
General Service Rates
Like most industries, LREC is seeing a lot of cost pressures. Our wholesale rate forecast is going to increase our retail rates in the future. Inflation is hitting our world hard in so many different capacities, but I believe that the value afforded by electricity remains high. LREC, through the efforts of its membership, board of directors, and employees, has put itself in an extremely strong position so that it may absorb some of these costs to minimize the impact on your rates and retain rate stability in 2023. We know you are getting price increases on virtually everything you purchase today compared to a year ago, or even perhaps a month ago. As a member-owned cooperative, we are doing everything we can to not simply pass costs on to you, the member. As of this writing, our forecast indicates a need for additional revenue in 2024, unless the rate of inflation drops significantly and the cost of natural gas sharply decreases.
Changing Landscape
The goal of this column is to provide you with a view of how things are looking at this particular time. However, as you all know and can appreciate, the landscape of our industry (and most everything in our lives) is rapidly changing. I will continue to keep you all informed as we move forward together.
