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.
During the 2018-2019 winter season, natural gas prices hit the highest levels 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.
As we exit the heating season, prices for natural gas are dramatically dropping.
At the April 17, 2019 Utilities Board meeting, we proposed the following decreases, to take effect May 1, 2019. City Council approved the rate decrease by a vote of 9-0 at their regular meeting April 23, 2019.
- ECA rate changes the current rate of $0.0245 per kWh to $0.0209 per kWh.
- GCA rate changes the current rate of $0.3034 per Ccf to $0.1746 per Ccf.
The total decrease for the typical residential customer per month is $10.24 ($7.72 for natural gas, $2.52 for electric, based on 700 kwh electricity and 60 Ccf gas).
For the typical commercial customer, the ECA decrease is $21.60 or 3.6% per month based on monthly use of 6,000 kWh. The GCA decrease is $159.72 or 23.3% per month, based on 1240 Ccf monthly use.
For the typical industrial customer, the ECA decrease is $1,440 or 4.3% per month based on a monthly use of 40,000 kWh. The GCA decrease is $1,597.12 or 24% per month based on a monthly use of 12, 400 Ccf.
These decreases more than off-set the increases to the GCA and ECA that took effect Feb. 1, 2019.
In 2018, we passed through cost adjustments in February, May, August and November.
- In February 2018, we decreased the GCA and made no change to ECA.
- In May 2018, we increased the GCA and decreased the ECA.
- In August 2018, we increased the GCA and decreased the ECA.
- In November 2018, we increased the GCA and ECA.