Kootenai Electric Board May Grant 10 Percent Rate Cut

Residential customers of Kootenai Electric Cooperative will get a 10 percent rate cut if the utility’s board of directors approved the proposal Oct. 29.

An average homeowner using 1,200 kilowatts of energy would save $11.30 per month. But the adjustment could drop bills in some months by as much as 36 percent or, for a few customers, raise them in some months.

The variation, said spokeswoman Catherine Parochetti, is due to a restructuring of the cooperative’s rate schedule.

A $13 facility fee imposed even if no energy is used will be eliminated. Instead, she said, members will be charged only for the energy they use, with a $24 per month minimum.

Parochetti said revenues from large commercial users will decline almost 7 percent, with most accounts benefiting. The basic service charge will be halved to $2.30 from $4.54.

“We’re doing all this in an attempt to become more competitive,” said Parochetti, noting that the proposal would cut customer bills a total $1.2 million. Kootenai’s 1995 revenues were $13.8 million.

“Lowering rates has been our chief objective and I’m glad we have achieved this,” General Manager Bob Crump said.

Parochetti said most of the rollback can be credited to a reduction in the cost of power purchased from the Bonneville Power Administration. The cooperative recently signed two contracts with the federal powermarketing agency.

One, a five-year deal, covers 70 percent of Kootenai’s needs at an average cost 8 percent below that of a year ago.

A second, 14-month transaction for the remaining 30 percent produces even greater savings, Parochetti said.

Hayden-based Kootenai Electric serves 13,000 members and employs 60.

, DataTimes