June 10, 2021 at 1:12 p.m.
Lake Country Power addresses rate regulation issue at annual meeting
Lake Country Power General Manager Rick Lemonds and two co-op members, Grace Derfler and Marvin Ott, joined Koppendrayer on the panel. The panelists addressed the pros and cons of co-op re-regulation by the MPUC.
"Who do you really want in the seat of accountability?" asked Koppendrayer. "The PUC would look at the co-op's rate of return and service quality, not the cost of wholesale power. If regulated, co-op members would need to explain to the PUC why a rate increase is not necessary or how it should change. That is much harder to do with a five-member panel appointed by the governor than it is with your local co-op board member.
"I'm a member of a different co-op, and I wouldn't want to pay twice for the service I've already elected a board member to provide."
Lemonds said it is the right and privilege in a co-op for members to vote on an issue such as regulation. He indicated rate regulation will add to the co-op's costs and if members vote in favor, Lake Country Power will meet that objective and continue providing consumers with safe, reliable and affordable electric service. Lake Country Power estimates rate regulation will increase expenses on average $350,000 per year.
Ott advocated on behalf of members who are seeking additional PUC oversight and additional government involvement of the co-op's rates and policies. Ott said the added oversight would be worth the extra cost.
Other presenters, including Mark Glaess of the Minnesota Rural Electric Association, said electric costs are rising for all utilities. He said climate change would have a major impact on member's electric bills in the future. Glaess encouraged co-op members to contact congressional leaders and get involved so ratepayers in Minnesota and the Midwest aren't left holding most of the bill when Congress acts on energy issues.
The results of director elections were also announced. Jack Huhta defeated Charles Mistek in District 2. Carter Pettersen was re-elected in District 4 over challengers Craig Carlson and Michael Hughes. And Jim Huhta defeated Danny Smith in District 8.
During the board reorganizational meeting, District 7 Director Richard Wallin was elected President, Robert Bruckbauer, vice president; Pettersen, Board Secretary; and Donovan Strong, Treasurer.[[In-content Ad]]
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