MVP proposes rate hike
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PABLO — All Mission Valley Power customers — seniors, citizens, families, businesses — will see a $2.50 hike in their basic charge if a rate increase proposed by MVP is approved.
For instance, residential user rates would go from $7.50 to $10 per month with the minimum monthly charge going from $12.50 to $15. The basic rate for large commercial customers would go from $127.50 to $130.
The proposal is based on the general economy combined with the closure of the Plum Creek mill in Pablo in the spring of 2009, according to Dalene Morrison, customer service manager at MVP.
Plum Creek’s power bill averaged $600,000 per year, creating quite a hit for MVP after the mill closed. New construction has stalled in the area also and that means no new customers for MVP. While MVP has moved projects further into the future and put off purchases, the organization is still looking at a $350,000 shortfall. To deal with this lack of funds, MVP has proposed a rate increase.
A service and rate study done in 2007 by EES Consulting showed MVP was under billing compared to other power companies. Even with the proposed rate hike, MVP will still be under what EES recommended, Morrison said.
MVP is a non-profit organization, governed by federal rules and regulations, with no borrowing power and is completely debt-free by law.
“Whatever we make is our budget for the next year,” Morrison said.
The proposed rate hike will change the way MVP charges for its light poles, also. At present, MVP does not recoup its costs on light poles, which cost $450 apiece. Customers with an area light who need a new light pole sign a three-year contract for the pole and pay $10.56 per month. At the end of three years, customers have paid $387.46. That means MVP loses approximately $63 on each light pole. Although the rate would not change, MVP would require the consumer to pay for the pole up front.
A series of meetings to elicit public comment was held across the valley, on July 12 in Elmo, on July 13 in Hot Springs, on July 14 in Arlee and on July 20 at MVP in Pablo. Turnout was small, with a total of 18 people attending the meetings.
Written comments still can be submitted to Lissa Peel, Consumer Council Chair, P. O. Box 97, Pablo, Mont. The public comment period for the proposed rate increase will close on Thursday, July 29.
At that time public comments and other information will be considered by a seven-member Consumer Council, appointed by the superintendent of the Bureau of Indian Affairs. The Consumer Council will present their recommendations to the Utility Board for consideration.
If the Utility Board approves, the rate proposal will go to the Confederated Salish and Kootenai Tribal Council. The Tribal Council can either reject the rate hike or move forward with it by forwarding it to the BIA for publication in the Federal Register and final implementation in January of 2011.
Complete copies of the proposed rate schedule are available at the MVP Office at 36079 Pablo West Road in Pablo.
