Vernonia's voice., October 15, 2015, Image 1

october15 2015
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VERNONIA’S
volume9  issue20
www.vernoniasvoice.com
reflecting the spirit of our community
A Look Into High WOEC Rates
By Scott Laird

The recent decision by the
Board of Directors at West Oregon
Electric Cooperative (WOEC) to raise
the rates by approximately six percent
gave members, management and the
Board another opportunity to discuss
and contemplate what are some of the
highest electric rates in the state.

With already high water and
sewer utility rates for customers of the
City of Vernonia, high electricity rates
add to the burden on families who
enjoy the rural lifestyle in the Vernonia
community, but struggle to afford to
continue to stay and live here. High
utility rates continue to be one of the
causes that pushes some families to
move away.

Originally organized in 1944,
WOEC consolidated several rural
electric Co-ops in the Nehalem Valley,
and now serves approximately 3,900
members in five counties, spread over
1,224 square miles. It provides electricity
to a mostly rural service district, with
the city of Vernonia as the only “urban”
portion. The Co-op is governed by a
Board of Directors of seven members
representing seven districts. The Co-op
has been cobbled together from areas
that other larger service providers were
not interested in and were unwilling to
serve.

The rugged and forested region
that power lines traverse, frequent long
distances between customers, and the
lack of industry in the service district
is used as an explanation for rates that
are often double and sometimes triple
those of other electricity providers in
the state and country. Add on several
severe weather events in the last decade
that forced the Co-op to incur significant
debt, and you have what one WOEC
staff member described as a “perfect
storm” that drives and keeps rates high.

The latest rate hike, caused by
an increase in wholesale energy costs
by the Bonneville Power Administration
inside
3
voices
from the crowd
11
vhs fall sports
12
meet the
exchange students
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salmon festival
(BPA), along with a shortage of
projected revenue due to an especially
mild winter last year, led to a rate hearing
on September 16, that was attended by
approximately 30 Co-op members, many
of them visibly angry at the possibility
of higher rates for service.

At their September 30 meeting
the Board of Directors approved an
increase of the base rate from $37 to
$39, plus an increase in Block 1 rates
for usage below 1,500 kWh/month from
13.85 cents to 14.7 cents, and an increase
in Block 2 rates for usage over 1,500
kWh/month from 10.51 cents to 11.18
cents. The average residential account,
using 1,000 kWh/month, would see an
increase of $10.50 beginning October 1,
2015, with the rate increase generating
approximately $600,000 in revenue.

The rate hearing and subsequent
conversations within the community
produced several questions that asked for
additional investigation, although this is
certainly not the first time members of
the Co-op have raised concerns about
high rates and the management of the
organization. The following is an attempt
to answer some of those question and
better inform the members about how
their electric Co-op operates and what
exactly is driving our high rates.

Is the WOEC service district really so
difficult to serve and maintain?

Management at WOEC have
continually explained to the membership
over the years that their service district
is unique and especially
challenging to serve.
The large territory, small
number of customers,
and lack of any large
industrial accounts leave
management with few
options to generate revenue
in order to maintain the
system.

A comparison of
other regional electric Co-
ops confirms what WOEC
management has been
telling their members.
The 2015-16 Northwest
Electric Utility Directory,
published by the Northwest
Public Power Association, lists electric
utilities in the Northwest, including
Alaska, California, Idaho, Montana,
Oregon and Washington. According to
the directory, WOEC has 4,266 meters
with 67,254,235 kilowatt hours (kWh) of
use, 684 miles of distribution lines, and
six customers per mile of distribution
line. Here is a comparison of other
regional utilities of similar size, based
on the number of meters:
Figure A

As you can see, almost every
one of the utilities sell more kilowatt
Keturah Coffee Roasters:
Artisan Coffee Crafted in Vernonia
Vernonians now have a new
option for a really great cup of coffee
right here in town.

Sam and Kari Hough are
now roasting small batches of artisan
coffee in their home and are making it
available for purchase.

Small batch artisan coffee is a
newer movement built on the idea that
consumers are interested in knowing
about the product farm-to-cup. The
coffee generally uses high quality beans
that are lightly and medium roasted to
retain the flavors from the region where
they are grown and can be personally
roasted to fit the taste of the consumer.

“We’re happy to be introducing
people to the world of good, fresh
coffee, said Sam Hough during a
recent visit to see their coffee roasting
operation.

What started as a hobby and
a desire to drink the best coffee they
could brew, the Houghs have expanded
their passion into a small, home based
business.

“I’ve been roasting my own
coffee for quite a long time,” said Sam.
“I started out doing it in a frying pan,
and learned how to roast it really well
that way, and then moved into using
a popcorn popper. Back then we were
doing it for ourselves and giving it to
friends as gifts, and people really liked
our coffee.”

Sam is the pastor at the
Vernonia Christian Church and Kari
does pet grooming and pet care in the
community. They homeschool their
children, and have created a small urban
farm on their property on OA Hill, with
rabbits, chickens, bees, a small orchard
continued on page 6
Left - Right: Sam, Avery, Riley, Sam and Kari Hough.
and they make their own
kambucha and keiffer.
A home based coffee
roasting business was
a perfect fit, something
they could fit in around
their somewhat flexible
schedules and other
responsibilities.

Sam says his goal
is to build up some small
and medium wholesale
accounts; he’s already
secured several through
connections in Vernonia. A local Bed
and Breakfast is using their coffees
as well as several local realtors in gift
baskets for new clients. They have
also established a good retail following
of locals who stop by to pick up their
roasted coffee beans or have them
delivered by Sam or Kari. They’ve
also started a website
( w w w. k e t u r a h c o ff e e .
com) where customers
can order coffee for mail
shipment or delivery if
they live in Vernonia. The
website also features high
quality coffee grinders,
drip coffee makers and
espresso machines that
can be purchased through
Keturah Coffee Roasters.
Of course the proof
is always in the finished
product and Keturah Coffee certainly
doesn’t miss there. They start with high
quality beans from all over the world:
Central and South America, Indonesia,
and Africa. Then the Houghs try to
cater the roasting and blends to their
customers’ tastes, where the “small
batch artisan” part of the business
continued on page 9