VINITA, OK -- The Grand River Dam Authority announced both bad and good news Wednesday. The utility says it plans to roll out an 11.95 % base rate increase on January 1, 2010, but remains optimistic the increase can also be rolled back in the future.
"It is possible this can be adjusted down in the future," said GRDA Chief Financial Officer Carolyn Dougherty. "Based on our ongoing financial condition and rate requirements, things could certainly change."
The GRDA Board of Directors approved the increase during its October 14 meeting, after reviewing the findings of recent rate analysis.
Those findings pointed to 2010 as the year when the rate adjustment would be most needed. However, because the older GRDA debt is scheduled to be paid off in 2014, the increase is considered temporary and would not last beyond May 2014.
"We are going to be in a belt-tightening period for the next few years," said GRDA Chief Executive Officer Kevin Easley. "Like many other organizations, we are seeing the results of a slowing economy, where growth projections did not materialize. However, the future remains very bright for GRDA past 2013."
Headquartered in Vinita, GRDA is a self-supporting state agency, funded by the revenues from the sale of electricity instead of taxes.
GRDA transmits and delivers electricity across its 24-county service area via a delivery system that includes over 1,900 miles of transmission line.