Background

In response to several years of unprecedented global inflation and significant increases in energy costs, SELCO engaged consultant Baker Tilly to conduct a new Cost of Service Study (COSS) for our electric division. The last COSS was performed in 2022, using data from 2021 and early 2022, before the drastic rise in global energy prices and other cost-of-living increases took effect.

The 2024 COSS was necessary to ensure that SELCO can continue to provide reliable electric service, fund necessary infrastructure improvements, and maintain financial stability. The study considered various factors, including the expected rise in regional transmission rates by 20% over the next three years, increasing operational costs, and the need to support major capital projects, such as a new service building.

Click here to view Baker Tilly's presentation to the SELCO Commission
Click here to download a copy of the presentation 

Key Findings and Rate Adjustments

The COSS results indicate the need for an overall rate increase of 9.1% across all rate classes to meet the rising costs and maintain SELCO's financial stability. Increases will vary across all rate classes and will take effect on September 1, 2024.

Potential Bill Impact

To help our customers understand how this rate adjustment may affect their monthly bills, here is a breakdown by rate class (rate class definitions can be found here or at the bottom of this page):















Why This Increase is Necessary

The rate increase is essential to cover the escalating costs of generation and transmission, fund capital projects, and maintain SELCO’s strong financial position. The study also revealed that several rate classes, particularly Commercial, GS1, and lighting, were significantly underpriced relative to their cost of service. As a result, these classes will experience steeper increases to bring their rates more in line with actual service costs.

SELCO’s Commitment to Affordability

Even with the new rate adjustments, SELCO remains one of the most affordable utilities in the region. Our rates continue to be lower than those of other utilities, reflecting our commitment to providing reliable and cost-effective electric service to our customers.




















Rate Schedule Effective September 1, 2024