Peninsula Light Company will keep rates to its members the same despite a Bonneville Power Administration electric rate hike that will take place Oct. 1.
BPA announced it will raise wholesale rates 9.6 percent for the next two years beginning next month. But PenLight will absorb the increase and not raise local power rates.
“For the past six years, Peninsula Light has been working to improve our cost efficiencies and cutting costs wherever feasible,” company CEO Jafar Taghavi stated in a news release. “I am really proud of our employees’ efforts. Their hard work at controlling costs is now paying off for our members. We’re able to pass these savings along to our members in the form of no rate increase at this time. Meanwhile, we have been able to continue our investment in system reliability, which remains our No. 1 priority.”
Nationally, PenLight is on the verge of moving into the first quartile for power reliability, according to an agency news release.
PenLight’s cost containment strategy is to take advantage of low interest rates for refinancing its long-term debt, limiting annual year-to-year operating expenses to a 1 percent increase, reducing outage costs by improving power reliability, reducing energy costs through conservation, outsourcing non-critical job functions and improving overall operating efficiencies.
“The board is pleased with the PenLight cost-containment strategy, and we’re happy about not raising rates this year,” PenLight Board President Nick Markovich stated in a news release. “Everyone has been working hard to control costs. Being able to pass on our savings to members clearly demonstrates our commitment to them and the value of being a member of Peninsula Light Company.”
PenLight is a member-owned, not-for-profit electric cooperative in Gig Harbor. The utility has grown from 1925 to be the second largest cooperative in the Northwest. It serves more than 31,000 meters with 977 miles of line and 112 square miles of service territory. The company also provides service to 3,230 water consumers.
For more information, visit www.penlight.org.