TURLOCK – At the public hearing on Tuesday, TID staff presented a proposal to increase the base electric rates for 22 rate classes an average of 15 percent. The increase will bring charges into line with the actual costs of providing electric service to those users. In December, the Power Supply Adjustment (PSA) charge will increase from $0.009 to $0.01 per kilowatt hour. The PSA charge is evaluated every six months and is projected to be reduced later in the year. The new rates would take effect on February 1, 2009. If adopted, it would be the first across the board electric rate increase since 2006.
Under the proposed rates, an average TID residential customers using 850-kilowatt hours of electricity would realize an increase of approximately $12.00 in their monthly power bills.
The District was forced to increase rates due to significant financial impacts including rising natural gas and wholesale electric prices, below average generation from hydroelectric and meeting state mandates for renewable energy and greenhouse gases. Without the increase, the District would fall short of the $52.7 million needed for its 2009 budget. The District is proposing to utilize $8 million from the Rate Stabilization Funds to help offset the increase felt by customers.
In conjunction with a rate increase, the District will continue its strict cost-control policy of limiting operation and maintenance increases to a maximum of 3 percent annually.
The Board will deliberate on the rate increase proposal and take action on the December 16th meeting in combination with the approval of the 2009 Budget.