SMMPA board approves rate increase

SMMPA board approves rate increase

September 24, 2009

The board of directors of Southern Minnesota Municipal Power Agency (SMMPA) has approved a 4% increase in its wholesale electricity rate to its 18 municipal utility members effective January 1, 2010.

Increased cost of fuel, debt service and state-mandated renewable energy programs will add to SMMPA’s costs in 2010. The increase will also enable the Agency to maintain adequate financial reserves as a key risk management strategy.

SMMPA Executive Director & CEO Ray Hayward said of the board’s action, “While we understand that no one likes a rate increase, even a modest one, the board made a good decision, balancing the needs of the Agency and the impacts upon the customers.  Our primary focus is to be reliable and affordable for our members and their customers, now and well into the future.  To accomplish these combined goals requires a rate increase at this time.”