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CUC wants higher power rate increase
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Posted on Mar 27 2009
Due to an increase in oil prices, the Commonwealth Utilities Corp. and the Georgetown Consulting Group have increased the power rate hike they are asking the Public Utilities Commission to implement.
In a March 6 report, Georgetown had recommended a new adjusted power rate of $0.19327 per kilowatt-hour. But in a new stipulation agreement between CUC and Georgetown, the two agencies are now asking for a rate of $0.20147 per kilowatt-hour.
PUC will vote on the matter at a meeting on Thursday. The rate will be in place from April 1 through Sept. 30.
Since the March 6 report, oil prices have increased, the agencies said in their stipulation.
“Accordingly, the parties agree that it would be just, reasonable and prudent to adjust upward GCG’s recommendation of an aggregate energy charge for the upcoming six months period to $0.20147 per kWh” the stipulated stated.
The increased rate, however, represents a 12.4 percent reduction from the charge of $0.22989 that has been in place since Jan. 1. The stipulation noted that the 12.4 percent reduction equals a savings of approximately $21.32 per month for a residential customer using 750 kWhs per month.
This is the second levelized energy adjustment clause, or LEAC, rate to be set. The first LEAC began Jan. 1 and lasts through Tuesday. Subsequent LEAC rates will be set every April 1 and Oct. 1.
The LEAC is based on a formula using four factors. Three factors are totaled: the projected fuel expense for the coming LEAC period; the difference between the fuel revenue and actual fuel expenses as approved by the PUC; and refunds or credits from the supplier, excluding legal settlements. Those factors are divided by the projected retail kilowatt-hours for the next six months to develop the LEAC rate.
