Customers and owners will notice a rate change in both electricity and natural gas provided by Lower Valley Energy. The cooperative has announced an increase in electricity rates and a decrease in natural gas rates.
“After months of analysis and careful consideration, Lower Valley Energy’s Board of Directors has made the final decision regarding electric rate adjustments that will take effect in October 2025,” reads a statement from Lower Valley Energy. “The decision comes in response to significant wholesale power cost increases from our electric provider, Bonneville Power Administration (BPA).
“The final numbers are now in and BPA has announced a wholesale rate increase of 14% to Lower Valley Energy. This substantial increase is driven by multiple factors affecting wholesale costs across all fronts—secondary market power prices are rising significantly, combined with a primary wholesale increase and a transmission increase of 19.9%.”
Lower Valley Energy commissioned an independent third-party firm that conducted a Cost of Service Analysis (COSA), which recommended an average retail rate increase of 7.9% to cover the increased power costs and to “maintain our financial stability and service reliability.” The Board of Directors did decide to implement an average 7.9% rate increase, effective October 2025. The rate increase will impact each member differently based on usage.
Natural Gas customers of Lower Valley Energy, however, have seen a rate decrease of 5% which went into effect September 1.
“This rate reduction reflects Lower Valley Energy’s strategic approach to energy cost management through proactive hedging activities that have successfully protected members from market volatility while capturing cost savings opportunities. Recent declines in wholesale natural gas prices have created additional savings that Lower Valley Energy is passing directly to its members, reinforcing the cooperative’s fundamental principle of providing energy at cost.”
The rate decrease amounts to approximately 7 cents. As with electricity, the exact savings will vary by rate class, with all customer segments benefiting from the reduction. For typical residential customers, this translates to meaningful monthly savings during the upcoming heating season.
Additional details can be found at LVenergy.com.
