East Central Energy plans rate increase for 2005
Money-saving energy programs can help members lessen the impact

Braham, Minn. - After years of holding the line, East Central Energy will increase rates in 2005. The ECE board recently approved new rates projected to increase revenue by 7.4 percent. Impacts on individual members will vary depending on factors such as participation in energy management programs. The new rates will first appear in bills members receive in April 2005.

"Employees have done a terrific job through mergers, innovation, efficiency gains and cost savings," says Joe Morley, ECE board chairman. "We've been able to postpone an increase for several years, but we're out of options now. To maintain reliable and prompt service, we have to increase rates."

Factors contributing to the need for the increase include rising wholesale power prices, investments in new construction and upgrades to preserve reliability as the system grows and increasing costs of right-of-way maintenance, equipment, transportation, fuel, labor and insurance.

"No one likes a rate increase but we have a duty to our members to keep the cooperative in sound financial condition," says Garry Bye, ECE president and CEO. "Two decades ago, the average ECE residential member paid about four percent of household income for electricity. After the new rates take effect, the average residential electric bill will be less than three percent of household income. So, even after the increase, electricity still will be a better buy than it was in 1985.

" Money-saving ECE energy management programs and investments in energy efficiency can help members reduce the impact of higher rates on monthly bills.

"It's important to keep improving energy efficiency," adds Greg Kvasnicka, ECE energy manager. "Unless a member already participates in all of our energy saving programs, we can probably help the member offset all or most of the increase through enrollment in a couple programs. The current Change a Light, Change the World promotion is just one example. Replacing the five most frequently used lights in the home with models that have earned the ENERGY STAR rating can help ECE members save up to $60 a year."

East Central Energy www.eastcentralenergy.com is a member-owned electric cooperative serving more than 53,000 homes, farms and businesses in east central Minnesota and northwestern Wisconsin. ECE also provides Internet and long distance services.