Light Reading March 2016

LIGHT READING INLAND POWER AND LIGHT inlandpower.com

New Rates Effective April 2016

Increase in Power Costs Lead to Electric Rate Increase In October 2015 our power supplier, Bonneville Power Administration (BPA), increased the cost of power we receive by 7.1 percent and the cost for transmission of that power by 4.4 percent. Since 2010 BPA has increased Inland’s rates by close to 26%. Due to the financial strength of Inland Power and by maintaining a tight operating budget, we have been able to hold off on the rate increase until this spring to avoid an increase during the high heating season.

Effective April 1, 2016, it is unfortunately necessary to increase electric rates by an average increase of 2.82%, or $3.32 based on 1,500 kWh usage per month. As your energy provider, we want you to know we are doing everything possible to keep our rates as low as possible while delivering safe and reliable service to you.

This cost increase is based on rising costs in operations and maintenance, improvements of the BPA hydroelectric system, along with increasing costs associated with BPA wildlife mitigation programs. Also included in this rate increase is the additional cost to meet Washington’s renewable energy requirements (I-937), voted on in 2006. Inland Power’s mandated renewable energy requirement increased from 3% to 9% in January 2016.

Residential and Seasonal Service Availability Charge (single phase) Service Availability Charge (three phase) kWh Charge General Service Availability Charge (single phase) Service Availability Charge (three phase) Demand Charge (over 50 KW) kWh Charge

Small Irrigation Service Availability Charge (single phase) Service Availability Charge (three phase) kWh Charge

$20.15 $30.00 $0.0650

Large Irrigation Horsepower Charge Demand Charge kWh Charge (May to Sept.) kWh Charge (Oct. to Apr.)

$6.50 $6.00 $0.0360 $0.0450

Outdoor Lighting Charge - 3% increase

ENERGY SAFETY

83% HYDRO 10% NUCLEAR

The Dangers of Downed Power Lines Follow these safety tips if you encounter a downed power line.

• Move at least 10 feet away from the line and anything touching it. The human body is an excellent conductor of electricity.

4% WIND 2% COAL 1% NATURAL GAS

Washington state law requires that all utilities report annually on the fuel mix used to produce the electricity sold to consumers. In 2014, Inland Power purchased all of its power from BPA for resale and distribution to our members. The majority of that power is generated from the hydroelectric dams along the Columbia and Snake Rivers. We are fortunate to live in the Pacific Northwest and receive this clean, efficient source of power. During 2014, Inland Power also purchased wind renewable energy credits equaling approximately 3% of its total load to meet I-937 requirements. This will increase to 9% beginning in 2016.

$20.15 $30.00 $7.00 $0.0690 $300.00 $7.00 $0.0550

2014

FUEL MIX REPORT

$20.15 $30.00 $0.0650

Large Commercial Service Availability Charge Demand Charge (over 50 KW) kWh Charge

While none of us enjoy raising rates, your cooperative will continue to work hard to keep your rates low and service reliable. As a cooperative utility, you are an owner and member of Inland Power.

We appreciate the opportunity to be your utility company and to serve you. Still our rates are amongst the lowest 1% in the country.

Inland Power Fuel Mix Report

MARCH 2016

Inland Power is one of the greenest utilities and the energy it provides is 87% renewable and 97% carbon free.

i n l a n d p ower i s m y c oope rat ive

• The proper way to move away from a line is the shuffle away with small steps, keeping your feet together and on the ground at all times.

• Do not attempt to move a downed power line or anything in contact with it by using another object such as a broom or stick.

Even non-conductive materials like wood or cloth can conduct electricity and potentially electrocute you.

• Do not drive over downed power lines.

• If you must leave your car because it’s on fire, jump out of the vehicle with both feet together and avoid contact with the live car and the ground at the same time.

Contact Inland Power at (877) 668-8243 if you ever see a downed power line.

WE ARE A MEMBER-OWNED ENERGY COOPERATIVE COMMITTED TO SAFE, RELIABLE SERVICE AT COMPETITIVE RATES.

HOW DO OUR RATES COMPARE?

- i n l a n d p o w e r m i s s i o n stat e m e n t

INLAND POWER GIVES THANKS TO OUR MEMBERS

HOW DO OUR RATES COMPARE? Even with this April’s planned rate increase, Inland Power’s residential rates will be the: • Lowest 1% in the country

• Lowest 15% in the Pacific Northwest • Lowest 11% in the state How does Inland’s kWh rate compare?

(Including 1,500 kWh and service availability charge)

• Inland Power Average - 7.8 ¢ • Washington Average - 9.37¢ • National Average - 12.73¢ At Inland Power we work aggressively to control costs and provide you with some of the lowest rates in the country. We recognize that rate increases are very challenging for our members and none of us enjoy raising rates. Your cooperative will continue to work hard to keep your rates low and service reliable.

Save the Date for the Annual Meeting 2016 Annual Meeting Saturday, March 26, 2016 10:00 a.m. to Noon Northern Quest Pavilion Airway Heights, WA Please join us on March 26 to elect your board of trustees, approve the proposed bylaw amendments and hear the latest happenings at Inland Power through our president, treasurer and CEO reports.

Inland Power would like to express a heartfelt thank you to our members for their patience and understanding as we worked through two epic power restoration efforts during the wind storm in November and snow storm in December.

A devastating wind storm hit the region on Tuesday, November 17. This was the largest outage event in Inland Power’s 78-year history. At the peak of the storm we had over 33,000 members without power. This is equivalent to 82 percent of our membership. We truly appreciate the support, patience and understanding our members provided to Inland Power and its employees during this epic event.

On the heels of the wind storm, we were then hit with a heavy snow storm on December 21. We lost power to approximately 3,000 members, which we were able to restore quickly. However, more snow came in on the evening of December 23. Many of the trees in our region were already weakened during the wind storm and this heavy snow was too much for them to handle. Hundreds of trees fell on the lines causing us to lose power to approximately 10,000 members.

The snow was the biggest challenge for our crews. Buckets trucks were not able to access most of the outage areas. Crews utilized all terrain vehicles to get close to problem areas, then walked in via snow shoes and climbed each pole needing work.

Inland Power also rented two helicopters to help clear the lines. The downdraft of the helicopter blades helped to blow snow off the lines and trees and let the trees rise off of the lines. This helped prevent more trees from falling and causing new outages.

Multiple trees fell on our lines. Our linemen had to remove all of the damage before they were able to begin the restoration process.

The downdraft of the helicopter blades leaves a green path in its wake and lifts all the leaning trees off of Inland Power’s lines.

power lines, remove trees, answer member calls and restore power as quickly as possible during both of these storms. We also want to thank our contractors and neighboring utilities who sent crews to help with this effort.

Inland Power prides itself on providing safe and reliable service and we realize these outages were a challenge for all of us. We will continue our pursuit of providing the quality of service that we demand of ourselves and that you deserve.

We appreciate the opportunity to be your cooperative and it is a privilege we do not take lightly. Thank you again for showing what it means for a community and a region to stand “Inland strong.”

Our employees worked tirelessly to rebuild

SCHOLARSHIP APPLICATIONS DUE APRIL 15, 2016 Inland Power has a long-standing commitment to continuing education and we are pleased to offer two scholarship programs.

The first is the Award of Excellence program which started in 1992 and provides 15 $1,000 scholarships annually to students pursuing a college education.

The second is the Lineman Scholarship program that provides three - $1,000 scholarships to students each year pursuing a career in the electric utility field.

The program is exclusively for active Inland Power members and their children. The 10110 W HALLETT ROAD

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SPOKANE, WA 99224

program is for senior high school students and includes college students who can still be claimed as legal dependents of Inland Power members.

An all-volunteer cooperative member committee comprised of approximately five to ten members make the selection of the scholarship recipients.

For the full program description, application and eligibility requirements, please visit www.inlandpower.com, or call (509) 789-4277. The deadline to apply is April 15, 2016.

inlandpower.com