Basin Electric transitions back to RUS oversight

This summer, Basin Electric began the process of transitioning back to rate oversight by the Rural Utilities Service (RUS) instead of the Federal Energy Regulatory Commission (FERC).

“This decision is due to a variety of factors, including access to low-interest funding from RUS,” Jim Horan, Basin Electric’s senior vice president and general counsel, said. “This is especially important as Basin Electric seeks to meet our growing capital needs to facilitate our projected load growth.”

Another important factor in the decision is the timeliness of approving rate filings.

“It has been five years since Basin Electric’s 2019 rate filing with FERC, and we still don’t have a decision,” Horan said. “RUS’s standard business practice is to address any rate adjustments within 90 days of approval by the board of directors.”

In September, FERC ordered that since Basin Electric holds RUS debt, it is no longer a public utility (per section 201 of the Federal Power Act) and is no longer required to file rates through the FERC.

“This order gives us direction going forward but does not address the period that Basin Electric was under FERC regulation,” said Horan.

Basin Electric will continue to work with FERC to resolve pending proceedings.

“The return to RUS will allow Basin Electric to access low-interest funding and receive timelier rate decisions,” Horan said. “This will help Basin control costs while maintaining the essential transparency of cooperative governance.”