Public Power Getting More Expensive

Posted on Wednesday, November 26, 2008

Many municipal electric utilities and rural electric cooperatives are increasing their retail electric rates because of increased wholesale costs.

The Western Area Power Administration and Basin Electric are the main suppliers to rural cooperatives and municipal systems.

Mike Lynch of East River Electric says cooperatives need to pass along rate increases from suppliers in order remain financially viable. Lynch says the dams are not producing as much electric power because of droughts and coal fired power is becoming more expensive. He says expanding power generation to meet growth is also expensive.