Notice of Meeting and New Tariff: Deferred Expense Recovery Rider
The Western Cooperative Electric Association Board of Trustees has approved the development of a Deferred Expense Recovery Rider. This Rider will allow the unusually high natural gas costs associated with Winter Storm Uri to be spread over a longer time frame in order to soften our members' financial impact.
Per Western's current Energy Cost Adjustment tariff, all power-generating fuel costs are to be collected in the following month's bill through the Energy Cost Adjustment that accounts for market fluctuations in fuel costs. Due to supply shortages during February's Winter Storm Uri, natural gas prices soared from approximately $3.00/MMBtu to $999/MMBtu. This Rider provides Western the flexibility to spread the expense recovery over 24 months.
At this time, Western is still analyzing the financial impacts of the storm. As we learn more in the coming days and weeks, we will continue to communicate updates directly to our members via our website, social media, emails, letters and/or other communication channels.
