PREMA Board Approves 2022 Budget with No Rate Increase

The PREMA Board of Directors, at its October 26, 2021 meeting, approved a budget which included estimated total revenue of $14,500,000 and net margins of just over $1,400,000 and no rate increase.  The budget also includes a capital credit payment to the members of $490,000 or 3.4 percent of budgeted revenue.  Any margins at the end of the year will be allocated to the membership. 

The budget reflects purchased power costs from Tri-State at over $7,751,000 which is 60 percent of PREMA’s total operating costs.

Included in the 2022 budget is $411,000 for replacement of equipment including four pickup trucks and a UTV.  It also includes continued funding of preventative maintenance programs such as pole testing, tree trimming and substation testing. 

Each year, certain financial ratios must be maintained to adhere to PREMA’s mortgage agreements with lenders.  The 2022 budget produced ratios that comply with these agreements.

PREMA continues to invest in new plant (such as poles, wires and transformers).  These investments make PREMA’s electric system more reliable especially during severe weather.

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 electrical needs in the New Year.  If you have any questions, please contact our office at 308-762-1311.