Staying In The Discussion On Agricultural Power Rates
By: Doug Busselman, Executive Vice President
We have continued to stress that being profitable is essential for agriculture to be sustainable. It goes far beyond the cliché that has been portrayed in the form of throw-back farmers from Normal Rockwell-type portraits. Staying profitable must be a priority.
In an earlier post we highlighted the developments which lead to the re-formulation of the electrical rates paid by agricultural irrigators in the Nevada service territory of the public utility once known as “Sierra Pacific”.
Looking ahead to the 2009 irrigation season (March – October), the most significant change will be the institution of the Peak Hours Rate of $0.30522, per kilowatt hour. This rate is set, by Public Utilities Commission regulation to be 3-times the established rate for non-interrupted irrigation power rates.
With time-of-use-meters that are being installed by the power company, electric bills will be calculated with the premium rate of $0.30522 being charged for electrical power that is used from 2 p.m. to 6 p.m., Monday – Friday, during the months of July and August.
Agricultural irrigators using the IS-2 power will need to evaluate a variety of potential strategies with outcomes that could include:
Production and crop yields are very important in the weighing of management alternatives and some producers don’t have an option of reaching for the “off-button” – their irrigation approach, can’t go off-line and keep their operation viable.
Paying the higher rate for irrigation electrical use during this peak time-frame is not a favorable alternative that they are embracing either…that extra 24-plus cents per-kilowatt hour, for those 176 hours of pumping (4 hours, Monday-Friday, July & August) will be felt in a big way when the monthly bill shows up in the mailbox.
The Cold Hard Facts Of Impact:
It will be important for irrigators using IS-2 power to document the consequences of the changes from the 2009 irrigation year.
Armed with actual data, we hope, that if necessary, we will be able to present a factual case for PUC evaluation on whether the benefits of un-used power – or power assessed at significantly higher rates – merits the off-sets that they obtained in establishing the Peak Hour System.
Agricultural producers will also be paying attention to the bottom line of their choice selection and making future decisions on what they learn.
We have continued to stress that being profitable is essential for agriculture to be sustainable. It goes far beyond the cliché that has been portrayed in the form of throw-back farmers from Normal Rockwell-type portraits. Staying profitable must be a priority.
In an earlier post we highlighted the developments which lead to the re-formulation of the electrical rates paid by agricultural irrigators in the Nevada service territory of the public utility once known as “Sierra Pacific”.
Looking ahead to the 2009 irrigation season (March – October), the most significant change will be the institution of the Peak Hours Rate of $0.30522, per kilowatt hour. This rate is set, by Public Utilities Commission regulation to be 3-times the established rate for non-interrupted irrigation power rates.
With time-of-use-meters that are being installed by the power company, electric bills will be calculated with the premium rate of $0.30522 being charged for electrical power that is used from 2 p.m. to 6 p.m., Monday – Friday, during the months of July and August.
Agricultural irrigators using the IS-2 power will need to evaluate a variety of potential strategies with outcomes that could include:
- The decision to curtail power and avoid the higher irrigation electrical rates (for some situations this could have no impact – for others the results may be reduced yields or quality of their crops)
- The decision to continue pumping and pay higher irrigation rates
- The decision to sometimes continue pumping and sometimes curtail power usage (again, there might not be an impact and in other cases the decision could be higher power rates and/or amounts and quality of crops)
Production and crop yields are very important in the weighing of management alternatives and some producers don’t have an option of reaching for the “off-button” – their irrigation approach, can’t go off-line and keep their operation viable.
Paying the higher rate for irrigation electrical use during this peak time-frame is not a favorable alternative that they are embracing either…that extra 24-plus cents per-kilowatt hour, for those 176 hours of pumping (4 hours, Monday-Friday, July & August) will be felt in a big way when the monthly bill shows up in the mailbox.
The Cold Hard Facts Of Impact:
It will be important for irrigators using IS-2 power to document the consequences of the changes from the 2009 irrigation year.
Armed with actual data, we hope, that if necessary, we will be able to present a factual case for PUC evaluation on whether the benefits of un-used power – or power assessed at significantly higher rates – merits the off-sets that they obtained in establishing the Peak Hour System.
Agricultural producers will also be paying attention to the bottom line of their choice selection and making future decisions on what they learn.
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