SSVEC Shares Early Notice About Likely Rate Adjustments

SSVEC sent out a special online notice yesterday through its Currents magazine and website.

Sulphur Springs Valley Electric Cooperative (SSVEC) wants to let members know early that electric rates may rise in the next few years. The cooperative works hard to keep rates affordable, and while they're working hard to mitigate the impact on their members, there are outside forces that influence the costs associated with electric service.

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This week, SSVEC shared that financial forecasts suggest a rate change will probably be needed unless major economic growth increases electric sales in the area. They stressed that it is not planning a rate increase right now or anytime soon. SSVEC expects to file a rate case with the Arizona Corporation Commission in fall 2027.

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Utilities Face Ongoing Cost Increases

SSVEC is letting members know about this possible increase now so they can prepare for the future. They're stressing that this isn't happening now, but it could take shape over the next year or so.

SSVEC says the cost of materials, equipment, and services needed to run the electrical system keeps rising.

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Prices for things like poles, transformers, vehicles, technology, insurance, and contracted services have all increased in recent years. the same time, the cooperative says it must continue investing in system reliability, safety, cybersecurity, infrastructure improvements, and its workforce.

SSVEC officials say electric sales have not grown quickly enough to offset those rising expenses.

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Economic Growth Could Improve the Situation

The cooperative says that future economic development could help. While nothing is planned right now, growth in the area could help lower costs for members.

Many electric system costs stay the same no matter how much electricity is sold. If more businesses, industries, or other large users join, costs could be shared among more customers. This might help reduce or delay future rate increases.

READ MORE: Innovative Drone Inspections Improve Power Reliability In Sulphur Springs

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More Details Will Be Available in 2027

SSVEC will use 2026 financial data to complete a Cost-of-Service Study. This study will help decide future revenue needs and look at how changes could affect different types of customers. The final 2026 financial data should be ready in spring 2027.

Any proposed rate changes will still need to be reviewed and approved by the Arizona Corporation Commission.

Members can stay updated and find more information through SSVEC Happenings.