Manager’s Message

Dear Members:

The 2023 annual meeting is scheduled for Thursday, September 7 at the Sierra Valley Grange Hall in Vinton. The August issue of Ruralite contained voting materials for the director election. You can watch the meeting live on YouTube by visiting our website and clicking the link on the banner at the top of the page or on YouTube.

Up for election are District 6 (North Doyle, Milford, and Herlong areas) served by Tom Hammond, and District 7 (Edgemont and Levitt areas) served by Nancy Miller. You can find our YouTube channel by clicking on the link.

We hope you will join us for an informative evening with updates, election results, and a Q&A session. We encourage you to submit questions in advance via email.

Rates
As mentioned in our previous column, the cooperative has reduced our wholesale power cost adjustment by 25% or 1 cent per kilowatt-hour. We are watching power supply conditions in the Nevada and California markets before we make any other adjustments.

Wildfire Season/Public Safety Power Shutoffs

As we get into the height of fire season, we want everyone to be prepared for potential outages. In the past, when PG&E had public safety power shutoffs, we have been able to stay on due to our backup power line to Nevada. However, this feed from Nevada is also subject to power safety shutoffs. If all our feeds go down, we will be without power. We’ve been lucky in that the conditions facing western Plumas County are different enough from eastern Sierra and Nevada counties that these outages haven’t occurred at the same time.
Please be prepared for outages. We maintain our system as best as we can, but we are subject to outages caused by our transmission providers.

Telecommunications

PST crews are finishing the final construction work in the Lake Davis area. Please call our office at (530) 832-4261 to schedule your installation and see if you are eligible for free installation.

Earlier this summer, PST submitted thirteen additional grant applications to the California Advanced Services Fund in Plumas, Sierra, and Lassen Counties to continue the expansion of broadband coverage to the hardest-to-reach parts of our service area. We will not know officially if we have received these grants until February 2024. PST will apply for additional CASF grants next year.

PST will be applying later this year for federal grant funding through the Last Mile Federal Funding Account that is administered by the California Public Utilities Commission. If you haven’t already signed up for service or want to be added to our interest list, call (530) 832-4261 or visit the Plumas-Sierra Rural Electric Cooperative website.

WRAP Program

Income-qualifying members can receive discounted rates through our Winter Rate Assistance Program. The discounted rate is available for November through April electricity use. For more information and an application, visit the Plumas-Sierra Rural Electric Cooperative website or call (530) 832-4261.

Affordable Connectivity Program

The Affordable Connectivity Program is a Federal Communications Commission benefit program that helps ensure households can afford the broadband they need for work, school, healthcare, and more. The benefit provides a discount of up to $30 per month toward internet service for eligible households and up to $75 per month for households on qualifying Tribal lands. The Affordable Connectivity Program is limited to 1 monthly service discount and 1 device discount per household. For more information, visit the Plumas-Sierra Rural Electric Cooperative website or call (530) 832-4261.

Youth Opportunities

As part of our commitment to the communities we serve, PSREC and its subsidiary offer life-changing opportunities to local youth, such as our scholarship program. Keep an eye out for the Youth Tour Scholarship application in the November edition of Ruralite. Area high school sophomores, juniors, and seniors have the chance to win an all-expenses paid trip to Washington, D.C., next summer to participate in the National Rural Electric Cooperative Association’s Electric Cooperative Youth Tour leadership program. One local winner will be among 1,500 high school students chosen from across the nation to tour Washington, D.C., in June 2024. These programs provide enriching experiences to help young people discover themselves and their roles as citizens. They also introduce them to the cooperative way, teaching the value of involvement and commitment to their communities. If you have any questions, please call (800) 555-2207 extension 6076, or email Bob Marshall.

Sincerely,
Bob Marshall
General Manager

A Letter to the Members

Dear Members:

The 2023 annual meeting is scheduled for 6:30 p.m. Thursday, September 7 at the Vinton Grange Hall. Additionally, we will broadcast the meeting via our YouTube channel. To join the meeting, visit our website and click the link in the banner at the top of the page or watch via YouTube.

If you are not attending in person, we encourage members to send questions in advance by email us or by the form included in your voting packet. We will also take questions through the chat function during the meeting. The year 2022 was a challenging but produc- tive year for Plumas-Sierra Rural Electric Cooperative and Plumas-Sierra Telecommunications.

The issue impacting the cooperative the most in 2022 was the incredible increase in the cost of wholesale power and natural gas during 2022 as compared to 2021. It was a perfect storm for PSREC, as the 2021 to 2022 drought in California greatly reduced how much hydropower the cooperative received at the same time the Russian invasion of Ukraine spiked natural gas prices throughout the United States.

Natural gas prices set the cost of wholesale power in California and the West, especially in dry years. High natural gas prices also affect our operations of the High Sierra Co-Generation plant. Further compounding power supply was the overall sup- ply of power in California, with multiple months where the supply was right at the limit, which drove prices up for August, September and October.

Lastly, there was a massive spike in the price of natural gas and wholesale electricity in December 2022 and January 2023 that drove both natural gas and power prices to 1,000% or more of normal. This led to significant losses to the cooperative we have reported on in our financial statements. All this was on top of the increase in PG&E’s transmission rates—now amongst the highest in the nation—and the impact of the closure of CCC prison.

Per the terms of our mort- gage with the USDA Rural Utility Service, we must meet financial ratios 2 out of every three years. Having missed our 2022 ratios by quite a bit, we must collect enough revenue to meet our ratios in 2023 and 2024. We increased our base rates in November and then added a wholesale power cost adjustment of 2 cents per kilowatt-hour on the January bill, and then an additional 2 cents on the February bill for a total of 4 cents per kWh. We use the WPCA for temporary rate increases.

There is some good news in 2023. We are having a better year with our power supply. Prices for natural gas, and therefore the electricity market, have started to drop closer to 2021 levels. In addition, it’s a good hydropower year, which will help us recover from the losses from last year.

As of July’s billing that goes out July 31, we reduced the WPCA by 25%. It is now down to 3 cents per kWh. Our goal is to reduce the WPCA further at year’s end, depending on wholesale power costs and our ability to restore our financial position to where it was before 2022.

PSREC continues to improve system reliability and response times through its supervisory control and data acquisition system. We continued increased vegetation management and the removal of hazard trees on the system to improve reliability and fire safety. We appreciate the increased cooperation from members on this key reliability.

Sincerely,

Bob Marshall
General Manager

Dear Members:

The 2023 annual meeting is scheduled for Thursday, September 7. The August issue of Ruralite will have meeting details and voting materials for the director election. Be sure to look for that information. You can watch the meeting live onYouTube.

Up for election are District 6 (North Doyle, Milford and Herlong areas) served by Tom Hammond and District 7 (Edgemont and Levitt areas) served by Nancy Miller.

If you are interested in running for the Plumas-Sierra Rural Electric Cooperative (PSREC) board of directors and live in one of those districts, contact me as soon as possible. The deadline for nominations by petition is July 24.

If you are unsure of your district, visit the PSREC website to view the map or call the office at (530) 832-4261.

A copy of the PSREC director qualifications and nomination procedures is available at our website.

Wholesale Power Cost Adjustment

The cooperative board and staff are reviewing our financials for the year, and we hope to reduce the wholesale power cost adjustment on your bills. The current Wholesale Power Cost Adjustment (WPCA) is 4 cents per kilowatt hour. We hope to reduce it for energy use starting in July by up to 1 cent per kWh. July use is reflected on the bills sent out at the end of July. Visit our website to see the current WPCA.

We are having a good hydropower year, but we must make up for the incredible cost increases in the power market from last year.

Reliability

Providing reliable power to our members is and will always be our priority.

As the energy industry transitions and more segments of the economy become electrified— such as vehicles, machinery and even lawn equipment—more pressure is placed on our nation’s electric grid.

With summer upon us, it is a good time to remind members about measures PSREC takes to ensure you continue to receive the reliable power you depend on.

While trees provide shade and add beauty to our area, overgrown vegetation accounts for about half of all power outages. That’s why we strive to keep the co-op’s power lines clear in right-of-way areas. A ROW area is the land a co-op uses to construct, maintain, replace or repair underground and overhead power lines. ROWs ensure we can provide clearance from trees and other obstructions that could hinder distribution power lines. The goal of our vegetation management strategy is to provide reliable power to members while maintaining the beauty of our area.

PSREC’s drone captures images of power lines and vegetation so we can accurately monitor the health of trees and pinpoint problems along the lines. Drone data is incorporated into our routine maintenance and inspections.

Generally speaking, healthy trees don’t fall on power lines, and clear lines don’t cause problems. Proactive trimming and pruning keep lines clear to improve power reliability. As advancements become more accessible and costs drop, we anticipate using additional technologies to ensure a consistent energy supply while managing the environment.

To learn about the latest co-op updates, follow Plumas-Sierra Rural Electric Cooperative on social media.

Telecommunications

PST crews are finishing the final construction work in the Lake Davis area. Please call our office at (530) 832-4126 to schedule your installation and see if you are eligible for free installation.

PST submitted thirteen additional grant applications to the California Advanced Services Fund in Plumas, Sierra and Lassen Counties to continue expansion of broadband coverage to the hardest-to reach parts of our service area. We will find out by the end of the year if we have been awarded additional funding.

Plumas-Sierra Telecommunications participates in the Federal Communications Commission’s Affordable Connectivity Program, which offers a monthly service discount of up to $30 for qualified households. To find out if you are eligible, visit the Get Internet website.

PST will expand broadband coverage of fiber optic service with speeds of up to 1 gigabyte per second through grant applications to the California Advanced Services Fund and federal programs.

PST’s service offers unlimited data use. If you haven’t already contacted us to sign up for service or to be added to our interest list, call us at (530) 832-4261 or visit the Plumas-Sierra Communications.

Office is Partially Open

PSREC’s office is partially open. PSREC and PST business can be conducted at our offices through a walk-up window. Walk-ups are available 8 a.m. to 5 p.m. Monday through Thursday. Additionally, appointments are available for specialized issues. We are planning on fully opening our offices this summer.

If you have questions, you can reach me at (530) 832-4261 ext. 6076 or email Bob Marshall.

Sincerely,

Bob Marshall
General Manager

Dear Members:

Rates

We have received questions from members on why an increase in the price of natural gas would raise electric rates.

The cooperative’s wholesale electric portfolio is roughly 50% hydro power, 5% solar and geothermal and 45% driven by natural gas. Those percentages are for a year with normal hydro power deliveries.

Our hydro power comes primarily from Shasta Dam, with some coming from the Folsom and New Melones reservoirs. When there’s a drought, we still must pay for the hydro power even though we aren’t receiving it all. We also have to then buy the replacement power.

Last year, Plumas-Sierra REC received only half of the normal hydro power. PSREC had to buy the rest from the market or buy more natural gas and run it through the generation we own. The bottom line for all of 2022 and the beginning of 2023 was that natural gas was the fuel setting the price for electricity in the western United States.

Spikes in the price of natural gas drove up the wholesale price of power. PSREC is normally resourced well, but the impact of the drought pushed us into the market, and the replacement cost for power was very high.

Things are better this year, but we still have to make up for 2022 and the beginning of 2023.

The PSREC board will review the cooperative’s ability to reduce the WPCA for the second half of the year. Any reduction in rates would be modest.

Wildfire Mitigation Plan

PSREC will present its Wildfire Mitigation Plan during the board meeting at 10 a.m June 28. The meeting will be open to the public for the Wildfire Mitigation Plan presentation and a public comment period following. Members can review PSREC’s Wildfire Mitigation Plan draft at our website. Please email our Marketing Team with any comments regarding the plan. If you have any questions, call (530) 832-6032.

Public Safety Power Shutoffs

Be prepared as wildfire season approaches. Learn how to protect your home and family at the Prevent Wildfire webpage. Part of being prepared includes being ready for Public Safety Power Shutoffs.

PG&E plans to turn off portions of its
grid during extreme fire danger, high-wind events and other critical situations. PG&E will disconnect lines in medium- to high-risk areas in the Sierras. This could affect our primary power supply that comes through Feather River Canyon.

When PG&E notifies us it intends to shut off our transmission feed, we will provide as much notice as possible to members. PSREC will post information to the PSREC website, Facebook and Twitter, our SmartHub app, and via email and text message. To sign up for text message and email notifications, log in to the SmartHub app from your mobile device or from www.psrec.coop and set your notification preferences. If you need assistance, call (530) 832-4261.

During PG&E shutoff events, PSREC will switch to our backup transmission feed from NV Energy if that connection is available. There is a limit to how much energy we can bring through that line, so members should be prepared for outages and rolling blackouts. If NV Energy also decides they must deenergize their line due to high fire danger, members of the cooperative will be without power.

Disconnect all nonessential electrical loads during a power outage. Every light and appliance turned off will help PSREC reenergize more of our system. If our power transmission system is constrained, conservation helps keep our electrical system stable and enables us to serve you and your neighbors.

Preparing for Outages

Preparing for power outages can help make the best of a bad situation. Equip your home with a power outage kit that includes a flashlight; battery-powered lamp or lantern and extra batteries; candles and matches; a battery-powered radio with extra batteries; easily accessible emergency phone numbers for your utility, doctor, fire and police; a telephone connected directly to the phone jack (cordless phones need electricity to operate); a one-week supply of drinking water and nonperishable food; and a cooler for storing frequently used foods. If someone in your home depends on electric-powered, life-sustaining equipment, plan for backup power.

If you install a generator to connect to your home’s electrical system, make sure it is done to code using an automated system such as a Generac switch or a manual double-pull, double-throw switch that separates your house from the grid. Failure to do so could cause injury or fire, leading to potentially massive liability on your part and disconnection from the grid, if discovered.

For more information on a double-pull, double-throw switch, talk to a licensed electrician. PSREC offers a $500 rebate for the purchase of a generator to its members on its medical necessity list. To receive a generator rebate form, call (530) 832-4261 ext. 6032.

PSREC sends outage information via text, email and social media. Follow PSREC on Facebook and Twitter for outage notifications. To sign up for text and/or email notifications, log in to SmartHub to set your notification preferences. You can report outages and view the latest outage information on PSREC’s outage map through the SmartHub app.

Telecommunications

As mentioned in last month’s column, Galeppi Ranch and North Loyalton are open for sales. Please call our office at (530) 832-4126 to get on our schedule. Additionally, PST continues to make progress the grants it received last year.

The projects are in various stages with construction really picking up with the improvements in weather.

PST’s fiber optic service offers speeds up to 1 gigabyte per second. Our coaxial service offers speeds up to 25 megabytes a second, and our wireless broadband service offers download speeds up to 20 Mbps.

With these speeds, you can stream videos on multiple devices at the same time without slowing down. You could even replace your TV provider with streaming services.

PST sends outage information via text and social media. Follow PST on Facebook for outage notifications. To sign up for text notifications, text PSTBB to (800) 555-2207.

For more information or to sign up for service, call (530) 832-4261 or visit our homepage.

If you have any questions, contact me at (530) 832-4261 ext. 6076 or email Bob Marshall.
to 5 p.m.

Sincerely,

Bob Marshall
General Manager

Dear Members:

Director Elections

In the cooperative world, we have a truism that goes, “Good cooperatives have great boards.”

This year, Districts 6 and 7 are up for election. District 6 (North Doyle, Milford and Herlong areas) is served by Tom Hammond, and District 7 (Edgemont and Levitt areas) is served by Nancy Miller.

To check which district you live in, you can view the boundaries of each district at our website.

You can call me for more information if you live in Districts 6 or 7 and are interested in running for the board. The board meets once a month, usually on the fourth Wednesday. Directors must complete training to stay current on issues and become certificated as directors.

Rates

As we all know, this has been a wet winter. This is the first condition for good hydropower deliveries but not the only condition. It’s important for the Bureau of Reclamation to properly manage runoff. We will know more about deliveries over the next few months. In addition, while hydropower is roughly half our power portfolio, another third of our power supply comes from natural gas and is sensitive to natural gas prices, which have been erratic for the past six months. Lastly, even though this year is looking better than 2022, we must recoup our heavy losses from 2022 and rebuild our financial strength.

The board is aware the members would like to see our wholesale power cost adjustment come down, and we are analyzing if and when we can reduce it at all. This will be a discussion point at each board meeting, and we will reduce it if conditions allow and the board deems it prudent.

May is Electrical Safety Month

At Plumas-Sierra, we recognize Electrical Safety Month every May, but we also know the importance of practicing safety year-round. From our co-op crews to you, the members we serve, everyone has a part to play in prioritizing safety.

Electricity is a necessity, and it powers our daily lives. But we know firsthand how dangerous electricity can be because we work with it 365 days a year. Contact us at (530) 832-4261 or visit  our Safety Tips page for additional electrical safety tips.

As we enter spring, we know members are eager to begin yard projects. Be sure to call 811 before you dig to have utility lines marked.

Tell the operator where you plan to dig and what type of work you are doing. The affected local utilities will send locators to your property, free of charge. Once utility lines are marked, you can dig safely without causing damage.

As irrigation season approaches, we remind members to look up. Whether cutting trees, working with irrigation pipe or other long objects, make sure you avoid power lines.

Telecommunications

Galeppi Ranch and North Loyalton are now open for sales. Please call our office at (530) 832-4126 to get on our schedule.

PST continues to make progress on the 5 California Advanced Services Fund grants it received last year. The projects are in various stages with some starting construction this spring as the weather improves.

PST is applying for additional CASF grants this month and will be submitting 4 applications with projects in Plumas, Sierra, Lassen and Nevada counties.

A reminder to members: If you are looking for service or wondering if you should make a long-term commitment with another provider, please check with us first. We hear again and again that if people knew our services were about to arrive, they wouldn’t have signed a different provider’s long-term contract.

Given our fast speeds, you can stream videos on multiple devices at the same time without slowing down. We have had many customers replace their TV provider with streaming services, ultimately lowering their monthly bills.

If you do not have fiber optic, the best way to accelerate fiber optic deployment is to download the CalSpeed.org app for your devices or computers. Running this app through your wired internet (not a cellular connection) will help us get additional grants to speed up fiber optic deployment. Even if you are without broadband access at your home, running this test is helpful for PST when applying for future grants to show lack of broadband access in the area.

If you haven’t already, get on our interest list or sign up for service by calling us at (530) 832-4261 or visiting Plumas Sierra Telecommunications.

If you have any questions, please contact me at (530) 832-4261 ext. 6076, or email me.

Sincerely,

Bob Marshall
General Manager

Dear Members:

We have received questions on the recent rate increases and wanted to share more information about it.

What Is the WPCA?

It stands for wholesale power cost adjustment (WPCA). When the cooperative has to raise rates due to a temporary situation on our wholesale power supply costs, we can use the WPCA to recoup our costs. In the past 15 months, wholesale natural gas and power prices have gone up dramatically, and we must recover these costs.

We raised the base rates (referred to as the facilities charge on your bill) starting in November after rate meetings with the members, for the reasons we explained in the magazine at the time. We also announced a 2 cent per kilowatt-hour (kWh)  WPCA starting for January usage at that time, as we knew we needed to implement at least that much of a WPCA to meet our required financial ratios from our lenders. Then there was a tremendous increase in the cost of natural gas in December and January, which drove up the wholesale cost of power all across the western US. Those cost increases required us to raise the WPCA by an additional 2 cents per kWh starting for February billing.

Last year was a tough financial year for your cooperative. The unexpected drivers were primarily the extreme drought that greatly reduced our hydropower deliveries. Making it worse was that the U.S. Bureau of Reclamation kept revising our expected power supply downward each month, which crippled our ability to buy replacement power on a cost-effective basis. Compounding this was the Russian invasion of Ukraine, which raised natural gas prices. Natural gas prices generally set wholesale electric rates on the margin. Then in the fall, the state of California was short on power supply, which drove wholesale prices even higher due to high demand and low supply. Lastly, there was a strange spike in natural gas, reflected in power prices in December and parts of January. At the peak, power and natural gas were trading for 10 times their normal price. The California Public Utilities Commission is opening an investigation into potential market manipulation with this last event.

How Are Rates Set?

The cooperative’s rates are set by the elected board of directors, keeping in mind the requirements of good financial planning and the requirements of the mortgages. The members elect the board, and the board works with management to set rates. The final decision belongs to the board. The board listens to the members of the cooperative, and the comments, letters and feedback they and the staff receive are discussed at every board meeting. When raising our base rates, the cooperative always notifies and meets with the membership to get feedback and to discuss rate design options. When we must raise rates quickly, we have sometimes used the WPCA method, and we don’t always have time for more than a month’s notification.

How Do Our Mortgages Play Into This?

When the board sets rates, they always keep in mind the mortgage requirements. Plumas-Sierra Rural Electric Cooperative (PSREC) was formed in 1937 and began operations in 1938, bringing power where no one else wanted to serve. We borrowed money from the Rural Electrification Administration. The REA later was renamed the USDA Rural Utility Service, and they are still our primary lender. We also borrow short-term capital from a giant private member-owned bank called the National Rural Utility Cooperative Finance Corporation. Both entities secured the loans with mortgages with clear financial performance requirements. If we have a bad financial year—like we did in 2022—we are required to raise rates to make sure we hit our minimum ratios the next 2 years. This means the board must raise rates to meet these ratios.

What Are We Doing To Mitigate This?

We are always looking at cost control measures, but we’ve been running lean for many years. We have diversified into the telecommunications business to bring essential services, but to also improve our economies of scale. We have always watched our dollars carefully, but that means there isn’t fat to cut.

We are not just accepting the costs and passing them through. We are working hard to build a bigger connection to the Nevada grid, allowing us to bypass some of the worst costs of the power that comes to us through the PG&E Transmission system.

We have been very successful in expanding our telecommunications subsidiary through State of California grants and some federal grants. That allows more cost sharing between electric and telecommunications.

Along with other members of the Northern California Power Agency, PSREC has been involved with litigation on the wholesale cost of power from the federal dams and hopes to have good news there soon. In addition, we’ve been working with Federal Emergency Management Association (FEMA) to recoup some of the costs of the Dixie Fire, and we are in litigation with PG&E over the Dixie Fire as well. Lastly, we will get more hydropower this year, though the exact amount is still undetermined.

What’s the Future of the WPCA?

The board of directors wants to reduce this when they can. We will discuss this at each board meeting. At the same time, we must recover from the impact of 2022, and we need to rebuild our cash reserves to keep our utility functioning.

We will keep you informed as things change both in Ruralite and on our website.

Lineworker Appreciation Month

April is Lineworker Appreciation Month. PSREC lineworkers are responsible for keeping power flowing day and night, regardless of holidays, vacations, birthdays, weddings or other important family milestones.

Beyond the years of specialized training and apprenticeships, it takes internal fortitude and a mission-oriented outlook to be a good lineworker.

In PSREC’s service territory and across the country, an electric co-op lineworker’s mindset of helping others often extends beyond their commitment to their work and into their communities.

Given the dedication of PSREC’s lineworkers—both on and off the job, and especially with the onslaught of storms throughout February and March—I encourage you to take a moment to acknowledge the many contributions they make to our local community. In the past two years, we have dealt with four massive wildfires and a historic winter. Even though the fires burned under our transmission lines and this winter has dumped enormous amounts of snow and rain, we were able to keep the power on with few interruptions.

Telecommunications

Fiber-optic service is now available in Loyalton north of Highway 49 with service south of Highway 49 coming early this month. Call (530) 832-4126 to schedule your installation. Coax conversions continue in North Portola. Call us to find out if your service location is eligible for conversion. Galeppi Ranch in Quincy will open sales later this summer.

Currently, Plumas-Sierra Telecommunications’ grant projects are in various stages of design, permitting and construction. PST continues to apply for California Advanced Services Funding to bring high-speed internet to our local communities and is currently working on three grant applications for 2023.

We continue to expand broadband coverage throughout the region. Get on our interest list or sign up for service by calling (530) 832-4261 or visiting the Plumas-Sierra Telecommunications website.

Fire Prevention

This spring we will begin our right-of-way work. This includes clearing poles, trimming trees, and removing trees that threaten our rights-of-way and our communities.

Your help is greatly appreciated with this crucial ongoing project. Our members have helped identify trees that have turned color or are clearly damaged. This is a big help—sometimes trees die and turn color after we’ve inspected them for the year.

Another way to help is cooperating when we need to remove trees. We don’t cut trees unnecessarily. It is a big expense to the cooperative. But if a tree is a hazard tree, we are legally required to remove it. When members cooperate with us on tree removal, it reduces our costs—which helps keep rates down— and keeps us all safe. Given California’s strict liability standard, PSREC must remove all identified hazard trees off our lines. If you have any questions or would like more information, call (530) 832-4261 ext. 6076, or email me.

Sincerely,

Bob Marshall
General Manager

Dear Members:

Update on Rates and the Additional Wholesale Power Cost Adjustment

December 2022 saw the largest monthly power cost ever for Plumas-Sierra Rural Electric Cooperative (PSREC). It was caused by an unprecedented spike in the cost of natural gas and the associated price increases for the market cost of power. Politicians and regulators are demanding inquiries into the natural gas price spike, as it has also hit residential natural gas customers throughout the state.

Due to extremely high costs in 2022, PSREC lost several million dollars. These losses were driven by a spike in power costs due to drought, high natural gas prices, a power crisis and then the natural gas spike in December. We sheltered our members from those costs in 2022, hoping costs would decrease. Unfortunately, the high power costs we saw in 2022 continued into 2023, and now we must recover those costs and rebuild our finances.

This prompted the board to act on a wholesale power cost adjustment increase to 4 cents per kilowatt hour for the February billing cycle, which will help us meet our minimum financial requirements.

We hope to reduce the WPCA later in the year once we see 2023 unfold and determine how much of the lower-cost hydropower we ultimately receive. SmartHub

At PSREC, we work hard to empower our members to take charge of their energy consumption.

Through our secure SmartHub app, we have tools you can use to access your historical energy usage. This data can be graphically compared to temperature data for your area. We have observed that—while there are several other variables—the heating portion of most residential electric bills increases 3% for every degree the average daily temperature drops below 50 F.

Increased awareness of energy consumption habits allows you to choose when and how to save energy and, in turn, can lower your bill. To access this information, create your online profile SmartHub if you have not already made one. To get started, go to Plumas-Sierra Rural Electric Cooperative website click the “Register for Online Access” link in the green login box.

You will need your account number and other identifying information for the primary account holder to create your SmartHub profile. If you experience any difficulty, you can call PSREC at (530) 832-4261, and we will be happy to assist you.

Members should also make sure we have your current contact information. By providing your most accurate and complete contact information, PSREC can continue to provide the high level of service that you expect and deserve. Accurate contact information enables us to improve customer service and enhance communications for reporting and repairing outages.

While we always do our best to maintain service, we occasionally plan outages to update, repair or replace equipment. In these instances, PSREC can provide advance notification to affected members through automated phone messages, text messages or email if we have your updated contact information and communication preferences.

We will never share the contact information you provide the co-op with any third parties. PSREC only uses your information to send you important notices.

Take a moment to confirm or update your contact information by signing into your account at our Plumas-Sierra Rural Electric Cooperative website, through the SmartHub app, or by calling PSREC at (530) 832-4261 .

Scholarships

Attending a college or university next fall? PSREC and Plumas-Sierra Telecommunications are offering two $1,000 scholarships. Full details and an application can be found at psrec.coop. The deadline to apply is April 28.

Telecommunications

PST crews are busy building out our fiber network and with a break in winter storms, they have been completing as many installations as they can while the weather allows. The coax to fiber conversions in Portola continue and will continue throughout 2023.

Fiber-optic service will open for sales in North Loyalton this month so be sure to call our office and schedule your installation. Galeppi Ranch will open for sales later this spring as we are waiting for final approval for the project. If you would like to get on the list be installed when this area opens up, please give us a call.

Our fiber optic service offers speeds of up to 1 gigabyte per second with unlimited data. For more information, or to sign up for internet service, call (530) 832-4126 or visit the Plumas-Sierra Telecommunications website. “

Get Ready for Spring Safely

Spring is just around the corner, and we are starting to make plans for outdoor projects.

While you are eager to get an early start, don’t ignore safety. Check your surroundings, both high and low. Be aware of overhead power lines when trimming trees or shrubs. If you are digging holes for new fence posts or planting trees or shrubs, call 811 before you start digging.

The process is quick and easy. The 811 call center will take your information and notify PSREC and other utilities of your request. A professional is dispatched from the co-op and other utility services to locate and mark the location of underground lines where you plan to dig. Call a few days before you are ready to work to allow for processing.

Remember to look up before moving irrigation pipes, using a ladder, installing a new antenna or flagpole, or moving large trucks, trailers or heavy equipment.

For indoor projects that involve wiring and electrical fixtures, make sure you turn the power off at the breaker panel to avoid getting shocked. Remember, “an ounce of prevention is worth a pound of cure.” It just might save your life.

If you have any questions or would like more information, please call me at (530) 832-4261 ext. 6076, or email me.

Sincerely,

Bob Marshall
General Manager

Dear Members:

In this issue of Ruralite is an update on the weather and the cost of power for Plumas-Sierra Rural Electric Cooperative (PSREC). As I write this, we have been buffeted by the series of atmospheric rivers through mid-January. I am pleased to report our electric and telecommunications systems have held up well.

We get questions and comments that assume good precipitation anywhere equals lower costs of power for PSREC and lower rates. Just because there is moisture somewhere in California, it does not mean PSREC will get full hydropower deliveries and reduce our costs.

Our primary power supplier for decades has been the Western Area Power Administration. Western is a federal agency that exists to sell power from the Bureau of Reclamation federal dams to eligible nonprofit (municipal and cooperative) customers. The Bureau’s main priority is flood control, followed by fisheries, water delivery to contractors, and, finally, power customers and recreation use. First call on hydropower generated is for Bureau operations, including pumps to deliver water to the Glenn and Colusa County water customers or for filling San Luis Reservoir so gravity will then carry the water south to water customers in the San Joaquin Valley. PSREC and other hydropower customers of Western (including LMUD) get what is surplus to the Bureau’s needs.

Precipitation only helps us if the water falls in the right watershed, in the form of snow as much as possible and the Bureau operates their system efficiently. Western has no intention of giving us our “normal” allotment of hydropower until at least March. There has been precipitation in the southern Sierra, which does not benefit PSREC from a hydropower standpoint. There is also precipitation in the central Sierra, which is good if it lasts in the form of a snowpack, and precipitation to the Shasta Dam watershed.

PSREC’s hydropower comes primarily from Shasta Dam and several smaller associated power plants. Great snow and rain south of Shasta Dam but north of the American River watershed does not help our hydropower deliveries. The next most important river system to us is the American River complex and Folsom Dam.

The drought getting better is great, but the final impact will not be known until we see if both the reservoirs and the snowpack in the far north of California are average or better. The better both of those are, the lower our power costs, but that does not mean the wholesale power cost adjustment will go away quickly.

Energy Markets – December & January

One of the problems with power costs we have not yet discussed with our members yet is a huge spike in natural gas prices throughout the western United States. Natural gas, the primary fuel for power plants in the west, was already high in 2022 due to the Russian invasion of Ukraine. Prices started settling down nationally in November, but in December, prices shot up to 1,000% of where they had been a year earlier for the Western United States. Prices for natural gas have faded to 400% of normal in late January, which is better but still horrific.

Part of the problem may be that there was an explosion on a pipeline in Arizona that reduced the flow of natural gas from Texas. That should be repaired by the start of spring. In a separate situation, Pacific Gas and Electric Company’s (PG&E) natural gas division was given permission by the California Public Utility Commission to reclassify a sizable portion of its natural gas as a “cushion” instead of “working gas.” This distorted the natural gas market as well, but even experts in the industry do not understand why prices are so high.

Rate Impact

We currently have a Wholesale Power Cost Adjustment (WPCA) of $0.02 per kilowatt-hour (kWh). It is possible high natural gas prices for the first part of 2023 could force us to raise the WPCA more. We protected our members from soaring prices in 2022, but we are not able to do it 2 years in a row. Our $0.02 per kWh did not include the impact of such unexpectedly high prices in December through February.

We do not see the power cost adjustment going down soon. It is possible it may go up depending on how quickly our hydropower starts delivering and the impact of the somewhat irrational power markets in the meantime.

Legislative & Regulatory Actions

We are working with our fellow utilities as part of Golden State Power Cooperative (our trade association), the Northern California Power Agency, and others in the industry on regulatory and legislative responses. There were entities in the natural gas and power markets who made enormous profits from a short-term, potentially manufactured, crisis.

Community Solar

The PSREC Community Solar Program is still offering blocks of 100 kWhs a month to members who want to use solar. PSREC offers members the choice of a monthly adder to their existing rate or a one-time upfront fee to participate in community solar. PSREC’s Community Solar Program is a great option for members who may not want to make a large upfront investment in a solar power system or rent or live in an area where a solar power system would not produce optimal energy output. Community solar is a maintenance-free, cost-effective way to participate in renewable power without solar panels on your roof. To sign up for PSREC’s Community Solar Program, call (530) 832-4261 or visit Plumas-Sierra Rural Electric Cooperative page.

Telecommunications

Winter is here, and Plumas-Sierra Telecommunications (PST) crews continue to build our fiber network and complete as many installations as weather will allow. We are replacing some of our coax network with fiber optic in areas of North Portola. Additionally, the Ponderosa Boulevard and surrounding area in Janesville is open for fiber installations. PST expects to start work on the Galeppi Ranch and Carol Lane East area in early winter, as conditions allow. We await final approval for the project that runs from the Mohawk substation (by Little Bear campground) to Spring Garden and through Greenhorn Ranch. We hope to begin construction once the snow melts. We are delighted to begin construction on the most recent grants we received from the California Public Utilities Commisions (PUC). As we build out, we will ensure we can serve as many people as possible along the way. Once we have our routes finalized, we will post them on Plumas-Sierra Rural Electric Cooperative. PST will apply for additional California Advanced Services Fund (CASF) Grant funding in 2023 to allow PST to continue bringing service to areas in our region that are harder to reach. For our members, we apply for all the grants we can to keep filling in new service areas. Our fiber optic service offers speeds of up to 1 gigabyte per second with unlimited data. For more information, or to sign up for internet service, call (530) 832-4126 or visit Plumas-Sierra Telecommunications website.

Scholarships

2 $1,000 scholarships are available. The deadline is April 24. Scholarships are open to high school seniors and older students with no upper age limit. To qualify, the student’s primary residence in Plumas, Lassen, Sierra or Washoe counties must be supplied with either electric power through PSREC or internet service through Plumas-Sierra Telecommunications. For more information, call (530) 832-4261 extension 6076, or email me.

Winter Preparedness

I would like to thank our line crews who worked tirelessly at all hours of the day and night in terrible weather during the recent storms to restore power as quickly as possible to our members. As this gets to you in the heart of winter, there is still the possibility of additional major storms. PSREC provides outage notifications via email, text, social media and our website. To receive notices, sign into SmartHub at Plumas-Sierra Rural Electric Cooperative and visit the “manage notifications” section to select the alerts you would like to receive. If you need assistance, call (530) 832-4261. We are here to help you, our member/owners. For more information on outage preparedness, visit our Outage Tips page. You can also view areas affected by outages on the power outage map page. If you have any questions or would like more information, please call me at (530) 832-4261 ext. 6076, oremail me.

Sincerely,

Bob Marshall
General Manager

Dear Members:

As we have been discussing for the last few months, due to the ongoing drought and high market power prices, Plumas-Sierra Rural Electric Cooperative (PSREC) will be adding a wholesale power cost adjustment starting for January usage on power bills mailed out at the end of January. The WPCA will be 2 cents per kilowatt-hour for the first quarter.

The WPCA will be adjusted quarterly depending on conditions as the year progresses. The biggest drivers of the WPCA charge are the lack of our federal hydropower due to extremely low reservoir levels at the Bureau of Reclamation dams in California and extremely high wholesale prices for power and natural gas throughout the Western United States. The wholesale prices are comparable to the worst of the 2000 power crisis.

At a rate meeting, a comment was made that PSREC raises rates when prices go through the roof, but we don’t give it back when things are wet. I’d like to address this.

There are 2 types of rate increases. The first is a base rate increase, which is driven by specific cost increases that aren’t going away. There is continuous pressure on our costs due to inflation—whether it’s high or low—and there are increased costs due to our being in the California Independent System Operator. The CA ISO controls transmission rates, and PG&E has been successful in getting approval for the highest transmission rates in the country. There is no prospect in a reduction of costs until we get at least partially out of the CA ISO.

In addition, there are regulatory requirements, including the rules requiring all utilities to eventually provide 100% of their energy through clean power resources. This requirement puts sustained upward pressure on rates on a continuous basis for years to come.

The second type of rate increase relates to short-term problems—such as the current drought—and high energy prices for the replacement power we need. We will not meet our required financial ratios in 2022; we must raise rates in 2023 to the level required to meet our ratios.

We do pass the savings of wet years to our members. In the past four years, when we had lower power costs than budgeted, we carried those power cost savings into the next year, reducing or eliminating the size of rate increases for the following year. Power costs in 2022 impacted our overall financial situation. It is likely the next wet or “good” year for power costs will be used to rebuild our cash position and we may have to extend the WPCA into 2024 due to the cost of power cost spikes in both the late summer and then in December of 2022.

If we beat our budget in non-power parts of our utility, we use those margins (savings) to reduce our borrowing for capital projects, giving the members multi-year savings.

We are a cooperative. Our members are the stockholders. When things go well, the board decides the best balance of short-term and long-term use of funds to benefit members. It all goes back to you, but not always as visibly or as memorably as the pain of a rate increase.

We were off to a great start with snowfall in mid-December, but what matters to power costs is how strong the snowpack is in April and how full reservoirs will be in the summer.

Telecommunications

In 2022, Plumas-Sierra Telecommunications received project grants from the California Advanced Services Fund. These projects include portions of Elysian Valley, Doyle, Herlong, Honey Lake Valley and part of the Susan River Valley, and parts of the Sierra Valley, Old Truckee Road and Loyalton. Installations have begun in some parts of Loyalton; reach out to our office to see if service is available at your home.

Additionally, the Ponderosa Boulevard and surrounding area in Janesville is open for fiber installations. PST expects to start work on the Galeppi Ranch and Carol Lane East area in early winter, as conditions allow. We await final approval for the project that runs from the Mohawk substation (by Little Bear campground) to Spring Garden and through Greenhorn Ranch. We hope to begin construction once the snow melts.

PST will apply for additional CASF Grant funding in 2023 to allow PST to continue bringing service to areas in our region that are harder to reach. For our members, we apply for all the grants we can to keep filling in new service areas.

Check availability for your location at www.pst.coop or by calling (530) 832-4261. PST’s internet services are unlimited; you don’t have to worry about data caps. PST offers speeds up to 1 gigabyte per second on fiber optic service. To learn more about services or get on the interest list, visit the Plumas-Sierra Telecommunications website or call (530) 832-4261.

Continue To Be Prepared for Outages

Winter is here, and though PSREC has invested in system improvements, removed hazardous trees and maintained the system, outages can and will happen. Being prepared can help make the best of a bad situation. Visit www.psrec.coop for information on outage preparedness and electrical safety.

PSREC’s outage notification system provides localized outage information to members via text and email. To view the most up-to-date outage information or to report an outage, log into the PSREC SmartHub app on your Apple or Android device or log in on our website. All outages should be reported to PSREC—day or night—at (530) 832-4261 or through the app.

Scholarships

PSREC and PST will offer scholarships to students who receive either electric or internet services from PSREC or PST at their primary residence in Plumas, Sierra, Lassen and Washoe counties. Applications and more information can be found on our website. The deadline is April 28.

Plumas-Sierra participates in the Washington Youth Tour program. This program provides an enriching experience to local youth that helps them discover themselves and their roles as citizens. It also introduces them to the cooperative way and teaches the value of involvement and commitment to their communities.

The Washington Youth Tour application deadline is January 13. More information is available at www.psrec.coop or by calling the member services department at (530) 832-4261.

If you have any questions or would like more information, please call me at (530) 832-4261 ext. 6076 or email me.

Sincerely,

Bob Marshall
General Manager

Dear Members:

The holiday season is finally here. Some call it the most wonderful season of all. That’s because we associate it with family traditions and gathering with friends and loved ones. It’s a time of giving and spreading joy.

Giving back reminds us of the many good things we have in our community and why it’s so important to spread the good as far as we can—especially to the most vulnerable in our area. We are reminded of how wonderful our community is and the impact we have when we work together.

Through the years, the cooperative’s community-focused programs have provided donations to local schools, awarded scholarships to local youth, helped families in need keep the lights on and so much more.

Plumas-Sierra also participates in the Electric Cooperative Youth Tour. Our community’s brightest young people travel to Washington, D.C., for a week-long immersion to experience democracy in action. Our community benefits from these programs because of you and your neighbors. We hope our members have a joyous holiday season. May it be merry and bright!

Rates

At the December and January board meetings, Plumas-Sierra Rural Electric Cooperative will consider what type of Wholesale Power Cost Adjustment to implement. The board of directors and staff will analyze the projected snowpack and reservoir levels throughout winter and wholesale power costs through the year. Check the website for updates as the year progresses. If approved, a WPCA would start with the bill that goes out at the end of January 2023.

WPCA adjustments will occur relatively close to real time so we can adapt to fast-changing market circumstances. We plan to review and adjust the WPCA as necessary. To stay up to date on WPCA adjustments for the upcoming month, visit our website. You can find the information on the Rates page and on the banner at the top.

Telecommunications

Plumas-Sierra Telecommunications (PST) is applying for additional grants from the California Advanced Services Fund. PST has previously received 6 CASF grants totaling more than $13 million. PST is currently in various stages of design, construction and installations in grant areas. These areas include portions of Elysian Valley, Doyle, Herlong, Honey Lake Valley and part of the Susan River Valley, and parts of the Sierra Valley, Old Truckee Road and Loyalton.

PST is seeing progress with the approvals for the current set of grants and is working with cooperative vendors on getting access to hard-to-find equipment so we can expand our system as fast as possible.

Check availability for your location on the Plumas-Sierra Telecommunications website or by calling (530) 832-4261. PST’s internet services are unlimited; you don’t have to worry about data caps. PST offers speeds up to 1 gigabyte per second on fiber optic service. To learn more about services or get on the interest list, visit the Plumas-Sierra Telecommunications website or call (530) 832-4261.

Eyes & Ears

Plumas-Sierra spends a tremendous amount of time and money grooming our rights-of-way and maintaining our equipment. It is a never-ending job, and we can always use your help. Our members often let us know when there are problems with our system. We have a remote, rural power grid with only six customers per mile of power line. When you alert us of a possible equipment malfunction, you help prevent fires and outages. Thank you, and continue calling if you believe something is not right. Operators are available 24 hours a day, 365 days a year at (530) 832-4261.

Capital Credits

Each year, the cooperative allocates the margins from the previous year back to members in proportion to the revenue from each member. These allocations are the basis of your capital credits. Over time, the board of directors votes to return the margins from past years to each member. In most years, the yearly allocation is a positive number.

However, we don’t always have a positive margin—due to tax requirements, 2021 was one of those years. PSREC will also have a negative margin in 2022, due to the reasons described in our need for a rate increase.

As a result, each member’s overall capital credits will be reduced based on the same allocation we use to increase it in years with a positive margin. This negative allocation is not billed to our members, and there is no impact beyond raising rates going forward to make sure we meet our required financial ratios from our lenders.

FEMA Grants

PSREC has been working with the Federal Emergency Management Agency to recover costs from the Dixie Fire. Recent public announcements stated we received several million dollars in allocated funds related to the Dixie Fire. The funds allocated are for a substantial portion of the repair work that has yet to be completed. While significant, the funds do not change the need for a rate increase. PSREC appreciates Congressman Doug LaMalfa’s efforts in helping make sure the funds are allocated and approved by Congress.

Thank you for your support of PSREC and the common needs of our community.

If you have any questions, call (530) 832-6076 or email me.

Merry Christmas and happy holidays! We hope you have a safe holiday season.

Sincerely,

Bob Marshall
General Manager