Skip to main navigation.

BEC Board announces--No rate changes in the 2018 budget

BEC Board announces--No rate changes in the 2018 budget

Red Lodge, MT – The Beartooth Electric Board of Trustees approved the 2018 Budget with no change in energy rates for the coming year.

“Stable rates are projected despite minimal customer growth and fewer kilowatt-hour sales” said BEC General Manager Kevin Owens. “BEC remains committed to controlling costs and operating on steady financial ground. Simply, we are living within our means while making critical investments to improve reliability and operational efficiency. Members will share the benefit of that mindset with no change in energy rates for the year.”

BEC is projecting operating revenues of $8.394 million for 2018, down slightly from revenues of $8.445 million last year. Revenue projections reflect energy usage of nearly 75.6 million kilowatt-hours in 2018.

The 2018 Budget is the first year of a multi-year Work Plan. Financial thresholds have been established by the board to maintain $500,000 in cash reserves and maintain a Debt Service Coverage Ratio (DSCR) of 1.25 throughout the Work Plan 2018-2022. In addition, the Cooperative maintains a $2 million line of credit for extreme unforeseen emergencies with both CFC and CoBank.

BEC is planning to invest more than $1.298 million in capital projects to upgrade substation circuit breakers, replace deteriorated poles, lines, and equipment in 2018. The primary focus areas driving the 2018 Budget are 1) deployment of the new digital meter replacement program, 2) improvements to the distribution system, 3) implementation of a five-year Vegetation Management Plan and 4) enhanced member communication. Members are encouraged to read BEC’s news portion of the monthly Rural Montana magazine, billing inserts and new direct mail initiatives scheduled to mail quarterly.

The budget documents reveal where your money is going and what measures are proposed to ensure safe, reliable and efficient distribution of electricity at BEC. They show major investments such as the replacement of our obsolete meter system with new digital technology, increased interest income from the Rural Utility Service (RUS) on new Cushion of Credit deposits that are used for debt repayments.   There is also the potential resolution of litigation involving $1.1 million in transmission overcharges from NorthWestern Energy.

All Budget related information is available for members to examine. The posted information includes the budget proposal, recent financial reports, the 2018? budget, risk management reports, the most recent update of the seven-year forecast plan, and links to other related information. You can pick up budget and planning information at the co-op or access it on the BEC website http://www.beartoothelectric.com.

If members have questions, you are encouraged to contact the BEC Office at 406-446-2310 or contact any BEC Trustee.

Powered by Touchstone Energy Cooperatives Logo