Inland Power & Light Co., the Spokane-based electric cooperative, has posted net margins of $3.2 million for 2015, down 27 percent from $4.4 million in 2014.

For the nonprofit co-op, net margins are the equivalent of a for-profit company’s net income.

“Last year was a challenging year for Inland Power with the historic wind and snow storms during November and December,” says Inland Power CEO Chad Jensen.

Jensen says the storms decreased the co-op’s margins by more than $2 million. Inland Power’s board of directors has agreed to expense storm costs to 2015 margins and to not pursue recovery of costs through any rate increase, though rates will rise in April due to factors not related to the storms.

Inland Power is  what’s called a full-requirements customer of Bonneville Power Administration, which markets the electricity generated by the Pacific Northwest’s federal dams and provides all of the co-op’s power requirements at cost-based rates.

Last October, BPA increased the cost of power that Inland Power receives by 7.1 percent and the cost of transmission of that power by 4.4 percent. 

In addition, renewable energy costs increased for the co-op from $208,000 to $908,000 this year due to mandates contained in Initiative 937, which Washington voters approved in 2006, says spokeswoman Jennifer Lutz.

The Energy Independence Act (EIA) required utilities with more than 25,000 customers to meet 3 percent of retail load from qualified renewable resources by 2012, 9 percent by the end of this year, and 15 percent by 2020.

Between the increase in wholesale power costs and I-937 renewable energy costs, Inland Power members will see an average increase of 4.2 percent starting April 1, Jensen says.

Inland Power’s lead source of energy is hydropower, which makes up 83 percent of its energy portfolio. Ten percent comes from nuclear energy, 4 percent from wind, 2 percent from coal, and 1 percent from natural gas, says the co-op.

Inland Power reported operating revenue of just under $66.8 million for 2015, down 2 percent from $68.1 million a year earlier. The co-op’s total assets at the end of 2015 were $321 million, down from $324.1 million in 2013.

Inland Power’s membership rose slightly to 39,900 members at the end of last year, up from 39,500 a year earlier. Inland Power employs roughly 100 people and provides electric service to 13 counties in Eastern Washington and North Idaho.

Inland’s total cost of electric service in 2015 was $66.1 million, up from $65.6 million in 2014.

The co-op is still working on its annual report, which will provide additional information on continued initiatives. Inland Power will hold itss annual meeting March 26 at Northern Quest Resort & Casino, in Airway Heights.