• Natural gas drops, electric increases

Lower Valley Energy has announced rate changes for natural gas and electricity that will go into effect on October 1. The energy cooperative said that natural gas rates will decrease by roughly 14.75% while electricity will increase by 6%, depending on usage. The changes were approved at the August Lower Valley Energy Board meeting.

According to LVE, the Board of Directors used a Cost of Service Analysis to give them guidance in making the decision. The electricity rate increase comes in the form of an increase to the monthly base charge that residential and small commercial members pay, regardless of how much energy is used, along with an increase in the energy charge to large commercial and industrial users.

“We realize the impact any rate adjustment can have on you,” said LVE in a statement. “As your energy provider, we want you to know we are doing everything we can to keep retail rates as low as possible while delivering safe and reliable service to you.”

The board predicts that without the electricity increase, LVE would have a $4.5 million shortfall due to inflationary pressures along with the increase in Tier 2 power costs. That last electric rate increase from LVE took place in 2017. The cooperative continues to have some of the lowest electricity rates in the nation.

On the natural gas side of LVE’s services, the rate decrease is based on Lower Valley Energy’s hedging activities and a recent decline in wholesale natural gas prices, according to the utility.

“Lower Valley Energy is a cooperative utility – owned by those they serve with any margins returned to its member owners. Lower Valley Energy works for and serves its member owners, and is here to provide the least expensive, most reliable energy with the best customer service. Please contact Lower Valley Energy at any time if you have questions about natural gas or for any other concern. Lower Valley Energy appreciates the opportunity to be the area’s energy cooperative and to serve its member owners.”

A town hall style meeting to discuss the changes will be held on October 2 at the Lower Valley Energy Office in Afton.