Board of directors approves 2010 budget with no rate increase
Budget tightened to ease member-consumers expenses during tough economic times

The Board of Directors of Empire Electric Association (EEA) reports that the 2010 budget passed on December 18th at its regular board meeting includes no rate increase for EEA member-consumers.

The action comes after months of concerted effort to maintain costs and trim expenses for the benefit of EEA member consumers during this current economically challenging time, while not impacting electricity service. This will be the first time in six years that EEA has not required a rate increase.

The major factor allowing EEA to hold the line on rates includes Tri-State Generation and Transmission Association's announcement of no rate increase in wholesale electric rates in 2010. The board suggested additional budget cuts which were also incorporated into the final budget.

The final operating budget is shown below:

Items 2009
Projected 		2010
Budget 		Difference % Change
Total Operating Revenue: $49,582,347 $50,058,470 $476,123 0.96%
Power Purchased from Tri-State G&T: $37,080,979 $37,537,437 $456,458 1.23%
Operations & Maintenance: $4,029,579 $4,082,534 $52,955 1.31%
Customer Accounting/Service/Information: $1,663,457 $1,672,347 $8,890 0.53%
Administrative & General Expense: $2,456,018 $2,504,138 $48,120 1.96%
Depreciation & Amortization Expense: $1,745,231 $1,867,917 $122,686 7.03%
Interest on Long Term Debt & Other: $1,630,467 $1,736,098 $105,631 6.48%
Total Cost of Electric Service: $48,605,731 $49,400,471 $794,740 1.64%
Operating Margin (Rev - Cost of Service): $976,616 $657,999 -$318,617 -32.62%

Neal Stephens, EEA General Manager, cautioned, however that avoiding a rate increase in the future is unlikely given new and pending federal and state legislation and regulations, as well as cost pressures placed on Tri-State Generation and Transmission, which supplies electricity to 44 rural electric cooperatives including EEA.

Maintenance is an ongoing portion of Empire's operating expenses each year to continually provide a safe and reliable electric system for EEA member-consumers. Although annual maintenance is standard, some structures have been in place for over 70 years and a large component of the aging system is slated for replacement over the next 10 to 20 years on a systematic basis which will add pressure to future rates.

Stephens commended EEA employees, including those organized under the International Brotherhood of Electrical Workers Local-969, for agreeing to a wage freeze to keep expenses down for the budget year and recognized the board for their personal efforts to control the budget by limiting expenses and business travel.

EEA, a Touchstone Energy Cooperative established in 1939, provides to it's 12,000 plus members, safe reliable electricity based on its core values. For further information contact EEA at 970-565-4444 or 800-709-3726.

For more information: (970) 565-4444 or Utah members (800) 709-3726