You are hereby notified that The Intermountain Rural Electric Association (“the Association”) proposes to make changes to its Rates and Regulations to become effective September 1, 2021, or such later date as determined by the Association’s Board of Directors.

The proposed changes will effectively result in a 2.25% general rate increase. They restructure the residential service and residential incorporated service tariffs by eliminating the Load Factor Adjustment (LFA), adding a demand charge, changing the energy charge and increasing the fixed monthly service charge. These changes will effectively implement a 3-part rate for IREA’s residential service. The proposed changes also retire the temporary Power Cost Adjustment (PCA) implemented in April 2021 and introduce an ongoing Wholesale Power Cost Adjustment (WPCA) rider that will better situate the Association to adapt to unanticipated changes in wholesale power costs, such as those experienced with the unexpected inoperability of Comanche III in 2020.

PROPOSED CHANGES TO THE RATES AND REGULATIONS

The following changes to the Rates and Regulations are proposed:

• Adopt the described rate revisions, which will have the effect of a general rate increase of 2.25%.

• Adopt a $1.50/kW on-peak demand charge for Residential and Residential Incorporated Town of City Service.

• Adopt a $1.00/month increase to the fixed service charge for all residential tariffs.

• Retire the Load Factor Adjustment (LFA) rider.

• Adopt a Wholesale Power Cost Adjustment rider, which is a formulaic energy charge calculated quarterly based on historic and forecasted costs used to recover or return power cost variances from base rates.

• Amend the LPS & FP rates to clarify upper limit of transformer capacity to 500 kVA and the CPT rate to remove the minimum load threshold.

• Adopt other non-rate related changes to the Rates and Regulations.

Copies of the proposed changes to the Rates and Regulations are available here, and at each of the following offices of the Association:

Sedalia
5496 North U.S. Highway 85
Sedalia, Colorado 80135

Bennett
1092 Cedar St.
Bennett, Colorado 80102

Conifer
13404 Old U.S. Highway 285
Conifer, Colorado 80433

Woodland Park
800 North Highway 67
Woodland Park, Colorado 80863

Consumers who have questions concerning the proposed changes may call the Association at (720) 733-5497. Association consumers may file written complaints by addressing them to the attention of the Chief Executive Officer and delivering them to 5496 N. U.S. HWY 85, Sedalia, CO 80135 at least thirty (30) days before the proposed effective date.

Dated this 1st day of July, 2021 /s/ Jeffrey M. Baudier, Chief Executive Officer