MARK WAITE / PVT Valley Electric Association Chief Executive Officer Tom Husted speaks to the attendees at the annual meeting in Fish Lake Valley Saturday. Advertisement

DYER -- The earlier announcement that a proposed increase in rates was delayed through 2009 led to a non-eventful annual Valley Electric Association meeting here Saturday.

There were no questions after a brief presentation by VEA Chief Executive Officer Tom Husted.

The annual meeting is moved every year to different areas of the far-flung cooperative which stretches 300 miles from tip to tip.

The VEA board last year announced plans for a 7.5 percent increase in rates, but at a Dec. 30, 2008, meeting decided to defer that rate hike on a month-by-month basis. Then, Feb. 27, directors decided a rate increase wasn't needed at all through 2009.

The rising cost of power and the construction of a 230-kilovolt transmission line around Mount Sterling were the reasons given for the increase. That would have raised residential rates from 10.27 cents to 11.25 cents per kilowatt hour.

By comparison, NV Energy began hearings on a 16.7 percent residential rate increase last week.

It appeared most of the 120 people who were bused the 185 miles to Fish Lake Valley, and about an equal number who arrived by other means, were interested in the free barbecue lunch and a chance at raffle prizes. The top prize was a $1,000 energy credit.

Husted likened the 44th annual meeting of the cooperative, held at the Rod Dowers farm equipment garage, as something akin to getting back to the roots of the cooperative.

"We recently contracted through 2016 for the majority of our energy needs, allowing us to have relative rate stability for that time period," he said.

"Of course, barring any unforeseen circumstances that may come up and nip on us, that also meant that we were going to have rate stability through 2009. Also what's important is when you look at our forecast between now and 2016, we're forecasting only a 6 percent rate increase over that time period."

The last rate increase was in 2006. Husted said that 6 percent increase over 10 years translates to only a 0.6 percent annual rate hike.

"When you look at all the things that have gone on here in the last 12 months and the last year, and a half there's been a lot of topsy-turvy things. So that's quite an accomplishment," he said.

There wasn't the usual "perfect storm" warning about the cost of carbon credits or rising power costs.

Instead, Husted said Valley Electric is actively negotiating a 20-year contract with NV Energy for a portion of the power from a new plant NV Energy is constructing, which will come on line in June 2011.

Work is progressing on the 230-kilovolt transmission line that will connect with the NV Energy grid, he said.

"This line will also be a catalyst in providing transmission availability for some of the solar plants that have been announced in our service territory. Not only will that help utilize those facilities but that will assist us by providing an additional source of revenues to the co-op," Husted said.

"Speaking of renewable energy, we're actively engaging and analyzing a business plan for the development of a domestic, solar water heating program that could apply to all our members using clean renewable energy bonds," he said.

VEA Finance Director Brian Fickett presented a report to directors back in February about the possibility of hooking up solar hot water heaters for all VEA members, for $6,000 apiece. Fickett said crews could install 18 units per day, 4,667 per year, eventually including all 16,399 members.

The cost of the system would be paid off in six years with reduced energy bills.

Husted's report indicated the plan isn't just a pie-in-the-sky idea. He said the business plan is due to be presented to the VEA board next month.

At a previous annual meeting, Husted told a questioner the cost of a solar power plant like the 64 megawatt plant built at Boulder City, was $320 million. The installation of individual solar hot water heaters is seen as a much cheaper alternative for a cooperative like VEA.

VEA is eyeing up the upcoming federal energy bill, which may require the cooperative to comply with renewable energy portfolios required of companies like NV Energy. Husted said there has also been state legislation proposed that would require the cooperative to have a percentage of its power from green energy.

Last year 73 percent of the members voted to expand the board from four to six members. District I board member Brent Crowther, from Pahrump sat in his last meeting and will be replaced by Peter Gazsy.

Rick Johnson was re-elected without opposition to District 3, representing the Beatty area.

The year before, members voted to allow balloting by mail. That eliminated the need to even attend the annual meeting.