Town forced to raise electric rates again

The town of Basin is facing another electrical utility rate increase. At the Sept. 10 meeting the council voted to pass Ordinance 721. The town had raised the rates earlier this year with Ordinance 720. This second increase was not anticipated or desired by the town.

The council set a public meeting on Sept. 24 at 6 p.m. for town residents. Each councilperson expressed it was important for the town to explain the increase. Town Attorney Kent Richins told the council the town has no choice but to pass the new ordinance.

The first increase was needed because they had been notified on March 12 via email that there would be additional changes to transmission rates and charges are expected effective April 1, 2026, because of the RTO expansion.  Ordinance 720 went into effect August 1, 2026. 

NMPP Energy sent the email saying that MEAN staff had compiled an analysis to show the impact the changes in rates and charges from MEAN, WAPA, transmission providers, and sub-transmission providers. The town increased rates based on the provided analysis. The town budgeted for an approximate $8,000 fee increase but the fee increased to over $17,000.  

Mayor CJ Duncan explained the new increase. “WAPA (Western Area Power Administration) traded some of their service lines to SPP (Southwest Power Pool). When they did that there was a large increase to the transmission fee of the electricity on their lines to feed Basin. It is about a 15% increase.” 

 When the town saw the doubled fees, they discussed what to do in executive sessions under “contract negotiations.” It was during those sessions they determined that Ordinance 721 was needed.

Duncan explained further, “Because its conveyance we thought it should it should just raise the base rate and not a usage fee increase. So, the proposed Ordinance 721 shows the increases to our base rates as they currently stand. If this passes it wouldn’t take effect until December.” The town will have to absorb the increase until then. It will be paid from the town’s saving account. 

The town did its due diligence when the unanticipated increase appeared on the statement from MEAN. Town Administrator Deaun Tigner reached out to MEAN and other small towns throughout Wyoming. 

MULTIPLE COMMUNITIES/STATES IMPACTED 

Basin is not alone in feeling the impact of the fee increase. Multiple supplies throughout Wyoming plus communities in Arizona, Colorado, Montana, Nebraska, and New Mexico are impacted as well.

An example of a community impact is another town in Wyoming. Their fees went from $38,000-$110,000. A  series of questions were asked by some of the impacted towns. 

Those questions included, “Did we know in advance of the transition to SPP that we would see these kinds of increases in transmission costs?  Did everyone see this large of an increase?  Was this discussed at the quarterly board meetings?  Why did we have to transition to SPP in the first place?” 

EXPLANATION 

  Joe Rivera/NMPP provided the following to this newspaper.” The Municipal Energy Agency of Nebraska was among several regional utilities that joined the Southwest Power Pool’s (SPP) balancing authority expansion into the Western Interconnection in April 2026. MEAN serves several communities wholesale power through SPP’s West Balancing Authority, including the Town of Basin.

SPP is responsible for ensuring a reliable supply of power, adequate transmission infrastructure, and competitive wholesale electricity prices. Benefits to being part of SPP’s West Balancing Authority include: Regional approach to transmission planning, reduced transmission congestion, increased reliability, and access to a competitive energy market.

As a transmission dependent entity, MEAN does not own transmission infrastructure. Since MEAN relies on transmission providers to deliver power to its wholesale power community members, MEAN’s participation must align with the balancing authority and market structure that governs those systems.

 Transmission charges

Transmission charges from SPP are assessed by zones. Transmission operators in each zone submit their revenue requirements to SPP, per rules set out in their tariff. That revenue requirement is then divided among all the entities in that transmission zone proportionally to the electric load they serve in that zone. In the zone Basin is part of, the revenue requirement increased and the zonal load decreased, meaning that each participant bears a larger proportional share of the transmission costs for the zone.

 Transmission charges to the Town of Basin are a direct pass-through cost from SPP. MEAN does not determine these rates and charges nor does MEAN have any control over these costs.

MEAN continues to advocate on the Town of Basin’s behalf, working with SPP to ensure these charges are correct, justified and applied in accordance with the SPP tariff.

It’s important to note that the transmission cost portion of the Town of Basin’s overall wholesale electric bill is approximately 20 percent of the Town’s overall wholesale electric bill.” 

OTHER BUSINESS

• A building permit was approved for Riley on North Eighth Street. 

• A building permit was approved for Harman at the North Hael Subdivision.

• Department reports were given. 

• An executive session was held for personnel and contract negotiation.