1945-2020 — in a few months, Western’s consumer-members can celebrate the 75 years their member-built, -owned and -operated electric cooperative has steadfastly served its membership. This great accomplishment can be attributed to consumer-members, board and staffing focusing on what was needed for the good of the whole, such as making wise financial decisions and investing in new technology.

Western takes pride in providing an essential service that impacts the way of life our consumer-members value. Like all businesses, to remain successful, Western must set rates that recover the cost of providing electric service as well as prepare for future challenges. The difference between investor-owned electric utilities and electric cooperatives, like Western, is we are committed to operating at the lowest cost necessary versus growing profits for share holders.

In early 2019, Western’s member-elected board hired an independent consultant to conduct a cost-of-service study to aid in managing the cooperative’s funds, ensuring quality service and making prudent financial decisions. The study not only identified the cost of providing service, but also the cost of technologies needed to provide better service to our members, prevent long outages and improve reliability.

Power Systems Engineering (PSE) completed the study in May and assisted in analyzing the study to ensure overall adequate revenues and equitable rates among all classes of consumer-members.

The study identified an anticipated flat demand for electricity through 2037. In addition, the study showed that Western’s current services cost $670,000 more than is being recovered through electric rates, with the largest shortfall occurring from the residential and irrigation service rate classes.

Fiscal responsibility and fairness to all of Western’s consumer-members require an overall rate increase of 1.9 percent, with larger increases from the rate classes currently under recovering the most. While the rate increases vary according to class, the average impact on a residential bill will be approximately $8.27 per month. If approved by the board, rate changes will be implemented in 2020.

The decisions made by the board affect us all. As a not-for-profit, member-owned utility, Western’s employees and board members pay the same electric rates and experience the same level of service alongside our consumer-members. We hope this fact, as well as our commitment to transparency, assures you that the rate change--like all other decisions — will be considered carefully and with the best interest of the entire membership in mind.

Results of the study are being communicated to our members in many ways, including informational meetings scheduled in six locations across our system: Wakeeney, Ellsworth, Plainville, Grinnell, Olmitz and Schoenchen. I look forward to seeing you at one of our gatherings.

Please follow us on Facebook and visit our website for more information. As always, if you ever have a question or concern, don’t hesitate to contact me at tomr@westerncoop.com or (785) 743-5761.

Nearly 75 years, that’s a big deal. You, our consumer-members, are the reason we will be successful for the next 75 years. Thank you for your continued support and participation in YOUR cooperative!

Tom Ruth is general manager of Western Cooperative. This article appeared in the October issue of Country Living Magazine.