Poudre Valley REA will reduce fees for electricity sold to all members, according to a decision by the Windsor utility board last week.
The average reduction will be 1.4%, which equates to an annual cost savings of $ 1.8 million for REA members. Large commercial members will see reductions of up to 1.9%, with smaller residential reductions.
PVREA is a nonprofit electrical cooperative owned by members that serves more than 48,000 homes and businesses in Larimer, Weld and Boulder counties in northern Colorado.
In general, residential and commercial utility customers will pay less with the tariff reduction than in 2017, PVREA said in its announcement.
The reduction will go into effect in the June accounts and appear as an energy cost adjustment line item, the utility said in a press release.
“Thanks to our continued focus on accessibility, combined with a tariff reduction from our cooperative wholesale energy supplier, Tri-State, we are able to implement this significant tariff reduction,” said Jeff Wadsworth, president and CEO of PVREA, in a statement by written.
The Tri-State Generation & Transmission Association announced on April 30 that it would cut wholesale rates by 2% this year and another 2% in 2022. Westminster-based Tri-State supplies power to PVREA and United Power, based in Brighton.
Wadsworth said that PVREA already has the lowest average residential rate among electricity cooperatives in Colorado. “This drop solidifies our commitment to accessibility, which is even more important at a time when prices are rising around us,” he said.
“We know that every dollar counts and we hope it will provide an economic stimulus for the communities we serve,” said Wadsworth.
He said the utility will continue to move towards the use of renewable energy sources, while maintaining reliability and affordability. “And through the board’s direction, we see a future of stable rates along with the potential for another rate cut as we plan 2022 and beyond,” said Wadsworth.
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