Why is a rate increase needed, and why now?

Most of our requested 9.3 percent rate increase is to pay for investments to provide cleaner and more reliable electricity to our customers – primarily new generating plants, new power lines across our system, pollution control equipment on some of our largest plants, and new plant construction in progress. From 1991 through the end of September 2009, those investments will reach approximately $14 billion.

Our current rates simply are not sufficient to build cleaner and more reliable energy infrastructure, meet day-to-day expenses, provide a fair return to our investors, and maintain a strong financial position that allows us to borrow money and keeps our cost of borrowing low.

We have a plan to help reduce the impact of the rate increase. We’re asking to return money to customers that was collected to pay for demand side management (DSM) and energy efficiency programs, but not spent. Returning the money through monthly bills over approximately five years reduces the rate increase to 7.2 percent.