Proposed Rate Increase

After a review of staffing and benefit costs, the long range plan for service area system improvements costs, equipment and computer replacement plan costs, energy efficiency program costs equipment and computer replacement plan costs, energy efficiency program costs as well as business operation costs, a budget shortfall of $900,000.00 has been identified for the period October 1, 2010 to September 30, 2011.

The revenue shortfall can be attributed to loss of revenue due to the closure of Plum Creek’s Operation in Pablo, new account installations are 50% below what we had in the middle 2000′ s, and the cost of doing business is still rising. Mission Valley Power is not increasing our employee numbers during this economy and continues to do business in a cost effective manner.

~fission Valley Power intends to pass on about one-third ofthis shortfall to ollr customers with a basic rate increase and a change to our area light/un-metered street light cost. The remaining shortfall will be handled by budget reductions.

The Utility Board has looked at the cost of establishing new services, including lighting. One area where we are not recovering our costs is when we install a wood pole for an area or an un-metered street light. In order to recover our costs, all future installations of area lights on wood poles and un-metered street lights on wood poles will require the customer to pay the cost of the pole and installation, which today is about $450.00. This eliminates the “area light with pole” and the “street light (Unmetered) with pole” rate classes, and all customers will pay the same rate. MVP will be responsible for all future maintenance.

The Basic Monthly Rate will be increased for all rate classes. The residential monthly minimum will also increase. The Basic Monthly Rate for metered street lights will increase as well. The irrigation horse power rate will not change. The energy rate charge (kWh) is not going to be changed at this time.

Even with these rate changes, Mission Valley Power’s residential rate remains the lowest in Montana.

The link below will allow you to download and print a public comment sheet.  Please mail to the address on the form.

comment sheet for public meetings pdf