PREMA Board Approves 2024 Budget

At the October 24 meeting, the PREMA Board of Directors approved the 2024 budget which included an estimated total revenue of $17,000,000, net margins of $2,400,000, and a capital credit payment of $200,000 (1.17% of the revenue) to the membership. Margins at the end of the year will be allocated to the membership.

The Budget reflects purchased power costs from Tri-State at an estimated $8,777,000 (62% of PREMA’s total operating costs).

 A rate increase from Tri-State of 9.1%, general inflation, and to increase PREMA’s cash position prompted the Board to implement the rate increase of 14% for 2024. This increase will be reflected in the retail rates in accordance with a recent Cost of Service Study. Certain components of the rates may get a slightly higher or slightly lower increase based on the Study.

Included in the Budget is $207,000 for replacement/update of equipment and the addition of a Compact Excavator. It also includes funding of preventative maintenance programs such as pole testing, tree trimming, and substation testing.

          Each year, certain financial ratios must be maintained to follow PREMA’s mortgage agreements with lenders. The Budget produced ratios that comply with these agreements.

          PREMA continues to invest in the utility plant with materials such as poles, wire, and transformers. These investments make PREMA’s electric system more dependable.

          PREMA employees are dedicated to the mission of providing high quality electric service at a reasonable rate. We at PREMA look forward to serving your electric needs in the New Year. If you have any questions, please contact our office at 308-762-1311.