In another bit of unwelcome news, VEC is experiencing dramatic increases in power supply costs. The worldwide shortage of natural gas due to the Ukraine/Russia war is the primary driver, and while VEC has long-term contracts for most of our power supply, we do have some "open" positions. Like many other businesses we're also facing rising costs for essential equipment, fuel, borrowing, and more.
So how are we responding? We're tightening our belts for the remainder of 2022 and anticipate requesting a rate increase for 2023 of between 10-15 percent. We know an increase of this size will be hard for many members, and we are working diligently to reduce the impact. We expect to file our rate proposal with the Public Utility Commission in mid-November to be effective Jan.1 2023.. We will do our best to keep you informed as we finalize details.
We are sorry to have to pass along these difficult updates. VEC remains committed to our member-owners and we take pride in providing timely and cost-effective service. We will do our very best to support our members during this challenging times.