FOR IMMEDIATE RELEASE
Grand Valley Power Changes Rates for 2023
GRAND JUNCTION, COLO. - (Jan. 1, 2023) – At its board meeting last month, Grand Valley Power’s Board of Directors approved changes to the cooperative’s electric rates. The changes include an increase in wholesale power rates from its supplier and an increase to cover the rising cost of maintaining the cooperative’s distribution infrastructure.
The cost of electricity is rising across the country. The issue is not unique to any one location or sector. According to the U.S. Energy Information Administration, the average rate for residential electricity has increased by 10.6% over the last 12 months, the largest year-over-year increase in the past decade.
The last two years have seen rapid price increases due to several factors: inflation, pandemic-induced labor and supply shortages, more demand for electricity, the war in Ukraine, and the cost of transitioning to clean energy. The largest impact on energy prices is the cost escalation of natural gas, which is one of the primary fuel resources used by our power supplier to generate electricity.
Grand Valley Power buys the electricity that it distributes to members at wholesale prices from the Public Service Company of Colorado, a subsidiary of Xcel Energy. Xcel Energy notified GVP that it would increase its wholesale rates at the beginning of the new year due to the rising cost of fuel, supplies and labor. As a not-for-profit co-op, Grand Valley Power charges its members for the actual cost of the power they use in kilowatt hours based on their energy consumption, and has no choice but to pass the rate increase through to members.
Additionally, the cost of maintaining Grand Valley Power’s distribution system (poles, wire, maintenance, equipment) is increasing. GVP is changing its Grid Connectivity charge to cover these costs and enable the cooperative to continue providing members with the service and reliability they expect.
“It’s critical that we deliver the safe and reliable power that our members expect,” said Rita Sanders, Director of Marketing and Communications at Grand Valley Power. “We have worked to create efficiencies, but costs have increased rapidly beyond our control.”
The changes will take effect March 1 and be reflected on April bills. The average GVP consumer that uses 847 kilowatt hours per month, with 25% of that usage occurring during on-peak hours, can expect to see their kilowatt hour charge increase by $6.85 per month and the Grid Connectivity charge increase by $1.50 per month.
Grand Valley Power members who need help paying their electricity bills can find a list of assistance programs on Grand Valley Power’s website.
About Grand Valley Power
Organized in 1936, Grand Valley Power is the first rural not-for-profit electric cooperative in Colorado. Serving over 16,000 members within the Mesa County area, Grand Valley Power is dedicated to empowering lives with hometown service and delivering safe, reliable and affordable electricity. For more information, visit gvp.org or follow us on Facebook and Twitter.