CUC seeks up to 12.7 percent base rate hike

The Commonwealth Utilities Corp. submitted an emergency rate hike petition on Dec. 8 that seeks to increase its power base rate by up to 12.7 percent effective Feb. 1, 2012.

In the six-page petition submitted by CUC legal counsel Deborah E. Fisher, the utilities company cited four major factors in seeking increased base rate charges: the significant decrease in billed usage that must be adjusted; substantial increase in retirement contribution this fiscal year from 37 percent to 61 percent; the need to account for Commonwealth Development Authority dividend payments beginning 2012; and the additional expenses that must be paid for as a result of the adoption of Telesource change order No. 5.

This petition is expected to be heard and decided at the January 2012 public hearing and business meeting of the Commonwealth Public Utilities Commission.

The base rate was last increased in June this year, but CUC said the approved rate was lower than what it had asked for.

In its testimony supporting the new rate hike petition, CUC consultant economists.com said that because the average residential ratepayer uses between 250 and 500 kWh per month, the rate hike will boost the average residential ratepayer’s monthly charge by $4.87 to $6.87.

RATE HIKE IMPACT

Using the levelized energy adjustment clause rate of $0.30791, economists.com presented the following impacts of the rate hike plan:

RESIDENTIAL CUSTOMERS

-For consumers using up to 250 kWh monthly, the current rate will be adjusted from $88.35 to $93.22-a $4.87 increase, or 5.8 percent hike.

-For those consuming 500 kWh monthly, the charge is from $170.08 to $176.95-a $6.87 increase, or 4.2 percent increase.

-For users of 1,000 kWh, their monthly billing of $363.03 will go up to $380.03-$23.87 increase, or 6.9 percent hike.

-For users of 5,000 kWh monthly, residential ratepayers will pay from $2,146.67 to $2,402.67-a $262.87 increase or a 12.7-percent hike.

COMMERCIAL CUSTOMERS

– For users of 250 kWh monthly, their charges will go up from $111.54 to $126.47-a $14.93 increase or 13.9 percent hike.

– For users of 500 kWh a month, the adjustment is from $214.02 to $239.95-a $25.93 increase or 12.6 percent hike.

– Users of 1,000 kWh monthly will see a rise in charges from $418.97 to $466.90-a $47.93 increase equivalent to 11.9 percent.

GOVERNMENT ACCOUNTS

– Users of 500 kWh monthly will see an increase of 14.2 percent-from $112.79 to $128.22, or an increase of $15.43.

– For government agencies using 500 kWh each month, the proposed increase is 12.9 percent-from $216.53 to $243.45, a difference of $26.93.

– For users of 1,000 kWh monthly, government accounts will see an increase of 12.2 percent-from $423.97 to $473.90, or an increase of $49.93.

– For government agencies using 5,000 kWh monthly, their bill will increase from $2,083.61 to $2,317.54-a difference of $233.93 or an increase of $11.7 percent.

RESIDENTIAL LIFELINE CUSTOMERS

The CUC emergency base rate proposal will also impact residential lifeline customers, who will see an increase in charges from 5.1 percent up to 12.7 percent.

– Residential lifeline customers using 250 kWh will see a 5.1 percent hike-from $86.58 to $90.76, or an increase of $4.18.

– For lifeline customers using 500 kWh, the proposed increased is 3.7 percent; 6.6 percent for users of 1,000 kWh; 9 percent increase for users of 2,000 kWh; and 12.7 percent increase for users of 5,000 kWh monthly.