Cost adjustments

 Cost adjustments

Energy Cost Adjustments

As a non-profit, community-owned utility, we pass changes in fuel costs—up or down—directly on to our customers. While we monitor fuel costs monthly, we usually ask for adjustments quarterly.

Adjustments are based on a "look back" of the previously forecasted fuel costs and a "look ahead" at projections for the next quarter.

Natural gas prices this winter season (2018-2019) have hit the highest levels we’ve seen nationally since 2014. Higher demand in winter months drives up cost. This year, there’s also lower levels of gas in storage in the U.S. and exports of natural gas are increasing.
 
Jan. 22, 2019 City Council approved increases to the GCA and ECA effective Feb. 1, 2019.
  • ECA rate changes the current rate of $0.0223 per kWh to $0.0245 per kWh.
  • GCA rate changes the current rate of $0.2047 per Ccf to  $0.3034 per Ccf.

The total increase for the typical residential customer per month is $7.46.  ($1.54 for electric and $5.92 for natural gas, based on 700 kwh electricity and 60CCF gas).

For the typical commercial customer, the ECA increase is $13.20 or 2.3% per month based on monthly use of 6,000 kWh. The GCA increase is $122.39 or 21.7% per month, based on 1240 Ccf monthly use.

For the typical industrial customer, the ECA increase is $880.00 or 2.7% per month based on a monthly use of 40,000 kWh. The GCA increase is $1,223.88 or 22.5% per month based on a monthly use of 12, 400 Ccf.

We expect the price for natural gas to decrease as the weather warms this spring and anticipate to decrease the GCA and ECA for a May 1, 2019 implementation.

In 2018, we passed through cost adjustments in February, May, August and November.

  • In February, we decreased the GCA and made no change to ECA.
  • In May, we increased the GCA and decreased the ECA.
  • In August, we increased the GCA and decreased the ECA.
  • In November, we increased the GCA and ECA.

Changes implemented in November resulted in ECA rates slightly higher than in January 2018 and GCA rates slightly lower than in January 2018.