Light Reading - August 2025

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LIGH READING

A population destinationand the energy impact

The population in eastern Washington and northern Idaho has shown a notable upward trend over the past few decades, fueled by a mix of economic opportunities, stunning natural landscapes and a high quality of life. Both urban and rural areas in the region have experienced substantial growth. Cities, along with smaller communities, have benefited from emerging industries, strong educational institutions and an increase in cultural and community activities.

Although the population boom, which peaked during and shortly after the pandemic has tapered off slightly, eastern Washington and northern Idaho continue to draw new residents in search of a balance between

career prospects and access to nature. This surge in population has brought challenges including heightened housing demand, traffic congestion, environmental pressures and grid-related issues. Consequently, our energy production, sourcing and consumption are crucial to ensuring that this growth remains manageable and sustainable.

According to the 2020 U.S. Census, the 13 counties Inland Power serves experienced an overall population increase of 13.7 percent from 2010 to 2020. Washington and Idaho were among 14 states that saw a population increase of 10 percent or more during this period as well.

As this region has become increasingly popular not only for residents but also for

visitors, the demand for power to support the influx has placed additional strain on our grid.

To meet this increasing demand, the Bonneville Power Administration (BPA) is investing in the hydropower system improvements to ensure our region’s primary source of generation continues to be reliable, affordable and clean. Investments in other energy producing projects such as wind and solar continue to be explored, and nuclear continues to play a significant part with the recent BPA approval announcement of a $700 million project aimed at boosting the output of the Columbia Generation Station nuclear facility in Richland, Washington. continued on page 2

Our mission is our members!

Inland Power is my cooperative!

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Another vital component in meeting the demand for dependable and secure power in our growing region is the replacement of outdated infrastructure. BPA and regional utilities, including Inland Power, are actively investing in new infrastructure initiatives to ensure we can support the anticipated growth and demand.

As previously mentioned, Inland Power is adopting a phased approach to gradually increase rates in response to rising costs for power supply, necessary infrastructure enhancements, escalating material expenses and BPA’s plan to enhance their transmission system, which will also lead to higher rates. We foresee several rate adjustments in the coming years and will inform our members in advance about these changes.

We recognize that rate increases are often unwelcome. However, it is crucial for us to take proactive measures and implement necessary changes. Please note that effective Oct.1, 2025, Inland Power rates will rise by 6%. This increase translates to an additional $8.49 on the average bill for members. This will allow us to effectively meet the needs of our expanding membership and the communities we serve.

We invite you to take a moment to explore our quarterly Light Reading article, “Inland Infrastructure and You,” where you can learn more about our ongoing improvement projects. Our next update will be included in our Nov. Light Reading issue, and we will keep our members updated on our development and progress as we move forward.

Things you should know about Power Supply and Rates

Inland Power is a 501(c)(12) not-for-profit cooperative that serves parts of 13 counties in eastern Washington and northern Idaho. As a preference customer of Bonneville Power Administration (BPA), Inland Power, along with other consumer-owned utilities in the area, receive a pro-rata share of hydro and nuclear energy. Inland Power has the right to purchase any extra energy it requires at current market rates. It can also commit to acquiring a specified amount of non-federal energy from the open market and have it delivered to BPA for its use. In return, BPA ensures that it meets all the cooperative’s energy needs, regardless of the load.

Inland Power also recently joined the Pacific Northwest Generating Cooperative (PNGC) in 2024 to help us navigate power supply challenges, partner with neighboring utilities and provide us with advanced capabilities and tools to meet the ongoing load demand and growth in our region.

Power rates are determined using the Tiered Rate Methodology (TRM),which establishes a two-tiered rate system.

This is when utilities secure a fixed amount of power at a cost-based rate.

This is when a utility acquires energy from BPA or the open market that exceeds its contractual entitlement at a Tier 1 rate and falls under a Tier 2 rate.

Comparison of Tier 1 and Tier 2 Rates 2019 vs. 2024 and 2026

Please note that Tier 2 rates are priced higher than Tier 1 rates. We expect Tier 1 rates to be around $38 per megawatt, while Tier 2 rates are forecasted to rise to a range of $69 - $71 per megawatt in 2026. Remember, these figures are projections and should not be considered finalized costs.

What are the projections for our region?

In 2019, IPL recorded an average load of 116 megawatts, with Tier 1 costs at $35 per megawatt and Tier 2 costs at $26 per megawatt. On Oct. 1, 2025, the average load will rise to 135 megawatts, with Tier 1 costs increasing to $38 per megawatt and Tier 2 costs escalating to $69 - $71 per megawatt. Projections indicate that by 2035, the average load could reach 166 megawatts, with even higher increases possible due to anticipated industrial growth in Spokane County’s West Plains over the next decade.

Please be aware that BPA is implementing essential infrastructure upgrades in response to rising energy demand and ongoing improvements. Consequently, BPA anticipates an 8.3% increase in Tier 1 power costs and a 21% rise in transmission expenses.

With anticipated transmission constraints and BPA’s transition to a Public Rate Design Methodology (PRDM), which is set to start Oct. 1, 2028, we expect demand cost will continue to increase in the near future.

Our commitment is to keep prioritizing communication regarding any rate adjustments as we navigate this constantly evolving environment. Please be aware that, effective Oct.1, 2025, Inland Power rates will increase by 6%. This adjustment will result in an additional charge of $8.49 on the average bill for our members. Our team is dedicated to transparency and remains focused on exploring ways to minimize the effects of these cost pressures while ensuring quality service for our members.

Education meets fun in one trip!

Recently, over 1,800 high school juniors from across the nation gathered in Washington, D.C., for the 2025 National Rural Electric Cooperative Association’s (NRECA) Youth Tour. Abigail Trudel from Spokane represented Inland Power as part of the Washington delegation, accompanied by three other students from Benton Rural Electric Association and Big Bend Electric Cooperative and tour chaperone Jacinta Angele.

While in the nation’s capital, students participated in educational seminars and engaged with legislative personnel.

Their itinerary was packed with visits to historical sites including: Arlington National Cemetery Monuments, the U.S. Capitol, various Smithsonian museums, the White House and and countless other attractions

The overarching goal of NRECA’s Youth Tour program is to educate youth on cooperative principles, promote rural electrification, familiarize them with rural electric cooperatives and instill an understanding of the principles and practices of the American democratic system.

The application process for the 2026 Youth Tour opens on Sept. 15, 2025, with a

deadline for submission set for Jan. 15, 2026

To be eligible for consideration, students must meet the following criteria: Be a high school junior Have parents or guardians who are Inland Power members at the time of application and selection Maintain good grades and demonstrate the ability to get along well with others, with verification of grades signed by a school counselor.

To learn more, visit our website at inlandpower.com/inland-in-the-community

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