Mission Valley Power (MVP) is committed to providing reliable service at reasonable rates, similar to those of our neighboring utilities. Revenue Rate adjustments are necessary due to significant increases in the costs of materials, fuel, insurance, and general operating expenses. As a non-profit organization, we must invest in crucial upgrades to our aging infrastructure while avoiding debt accumulation.
Over the past sixteen months, our customers have experienced two rate adjustments. The first adjustment, made in January 2024, was a change in the pass-through rate due to the cost of power purchased from the Bonneville Power Administration (BPA), which supplies approximately 95% of MVP’s power. This adjustment reflects the price MVP incurred for the power delivered to our customers.
The second adjustment, made in March 2025, is a revenue rate increase. The primary reason for this request is to achieve increased investment in our facilities and rising depreciation, operating, and maintenance costs. We at MVP have worked diligently to manage our expenses and improve efficiency. We are also investing significantly in our infrastructure to provide our valued customers with safe, reliable service.
Our investments today in Mission Valley Power’s utility foundation are paving the way for reliable service well into the future.
FAQ’s March 2025 Rate revenue increase:
- Why did MVP implement a rate increase?
- The revenue rate increase is necessary to cover rising operational costs related to replacing significant system assets and accumulating revenue to invest in an aging utility. MVP is currently in the process of replacing the 50-year-old transformer at the KERR substation. This adjustment will also help us enhance service reliability. The increase in rates will support crucial upgrades to our infrastructure, ensuring a consistent and dependable power supply.
- When did the new rates take effect?
- The new rate began on March 1, 2025, and due to the MVP billing cycles, the rate was reflected on April bills. You may have received a March bill that reflected the lower rates due to the meter reads and the billing cycles. Please plan accordingly, as an additional revenue rate adjustment will occur in March 2026.
- How will this revenue rate increase affect my monthly bill?
- The impact on your monthly bill will depend on your usage and rate class. Example: For a residential customer using 1,200 kWh per month on average, the new increased rate, along with the higher demand and the new basic charge, could result in an increase of approximately $18.50 on your bill. We recommend reviewing your past bills to better estimate the potential impact based on your energy consumption, including demand charges and basic charges. You can also sign up for budget billing to help manage your utility bill or switch to prepaid meters, which provide accurate information on your utility balance.
- What steps has MVP taken to manage costs before implementing this increase?
- We have implemented various cost-saving measures, including operational improvements and optimizing our workforce. We have compared our rates to those of similar regional utilities. For instance, the basic monthly charge for Missoula Electrical Co-op is $32.00, while Kalispell Electrical Co-op charges $24.31 per month, and MVP’s monthly charge is $23.50. Additionally, we continuously evaluate our expenses to enhance efficiency and reduce costs.
- How can I provide feedback, voice my concerns, and find more information about the rate increase?
- We value your feedback! Join us online or contact us directly at 406-883-7900. For detailed information, please visit our website at Missionvalleypower.org.
- Will the revenue rate increase affect customer assistance programs?
- We are dedicated to supporting our customers, especially those in need. Our MVP customer assistance programs, such as the Senior Citizens Fee Waiver, will remain available for eligible individuals. Applications for LIHEAP are available in our lobby, and our MVP Customer Service staff is ready to assist and guide customers in finding the right resources for help. We are dedicated to ensuring no one is left behind during this transition.
- How does MVP ensure transparency in this process?
- At MVP, we prioritize transparency and open communication. The revenue rate increase underwent a comprehensive evaluation process involving the Utility Board and the Consumer Council. We provide regular updates and detailed information about the revenue rate increase process on our website and through customer communications.
- What are the long-term benefits of this revenue rate increase for customers?
- The long-term benefits for MVP customers include enhanced service reliability and improved infrastructure. If the KERR substation had failed without investing in replacement equipment, as many as 16,000 customers could have been left without power. The Kerr Substation Project, once completed, will cost several million dollars. The revenue rate increase will support replacing aging infrastructure, ensuring a reliable and stable power delivery system. These investments will result in better-quality service and a more sustainable future for our community.
- We invest millions of dollars in our system to provide safe and reliable service for our customers, both now and in the future.
- Lastly, let’s revisit January 1, 2024. The cost of power pass-through resembles a revenue rate increase, but it isn’t.
- On January 1, 2024, you noticed an increase in your bill. This change was due to MVP’s implementation of the increased pass-through cost from BPA, which adjusted rates to accurately reflect the expenses for wholesale power purchased from the Bonneville Power Administration, the source of 95% of MVP’s energy. MVP passed increased energy purchase costs to customers without extra fees; revenue will be invested directly into a sustainable and reliable future for MVP and its customers.
We understand nobody likes hearing about rate increases, and we want to assure you that this decision was not made lightly. At MVP, we adhere to sound business principles while representing all our customers’ interests. Any proposed revenue increase in rate enhances this non-profit’s utilities service reliability and system’s resilience and reduces the risk of outages and disruptions.
The Department of the Interior (DOI) and the Bureau of Indian Affairs (BIA)
published the final rate decision in the Federal Register on January 17, 2025. Local customers can call MVP at (406) 883-7900 to request that a copy of the Federal Register be mailed to them. Additionally, copies are available at the MVP Customer Service area in Pablo, MT.
