CALIFORNIA, USA — The Roseville city council voted to approve the first reading of an ordinance to adjust Roseville Electric Utility rates.
The changes include making the temporary 8% surcharge implemented last year, permanent. Currently, the 8% charge is in effect through Dec. 31, 2024. If the ordinance is approved after a second reading, the 8% surcharge will become permanent on Jan. 1, 2025.
"We will all feel this, it doesn't mean we're not thankful for this service, but it's just the reality that we're in and as much as we don't want to do it, I do support what we're doing this evening," Vice Mayor Krista Bernasconi said at an April 3 city council meeting.
There would also be two 9% base rate increases with one on June 1, 2024 and the second going into effect on Jan. 1, 2025.
"Natural gas costs as I mentioned have gone over 300% and are now kind of staying around 200% compared to the prices before the 8% energy surcharge. Other cost pressures include labor where the energy industry is highly competitive and we compete in the same labor pool as our neighbors such as PG&E and SMUD," Dan Beans, the director of Roseville Electric, said.
These rate increases are estimated to bring $80.6 million in additional revenue for the Electric Fund from the fiscal year 2023-24 to the fiscal year 2025-26, an additional $48.6 million in fiscal year 2026-27 and $49.1 million in fiscal year 2027-28.
"The proposed rates keep Roseville Electric rates on par with SMUD. This includes the approved SMUD rate increases through 2025. The proposed rate increases keep Roseville Electric at approximately 50% of PG&E and in a year our customers saved $230 million compared to PG&E rates," Beans said.
Without making adjustments to rates, Roseville Electric Utility said the increase in energy costs has created challenges.
"Without taking action on rates, the utility's projected net cash flow stands to be negative $30.5 million in FY2024-25 and negative $48 million in FY2025-26," according to city council documents.
Roseville Electric Utility said it recognizes this increase could impact low-income customers. So, the utility said the rate proposal increases the current program from a 15% to 20% discount on electric charges. It would also introduce a permanent $15 per month reduction of the base charge for customers enrolled in low-income and medical support programs.
The average monthly bill as of June 1, 2024, would be $142, and on Jan. 1, 2025, the average monthly bill would be $154, according to Roseville Electric.
Electric Rate Assistance Program
The utility currently offers a program offsetting 15% of the monthly electric service on their utility bill, which is called the Electric Rate Assistance Program. A spokesperson previously said under the current proposal, customers enrolled in the program would also get a $15 monthly credit to help offset the proposed increases.
To qualify, someone must be a current Roseville Electric customer and fall under a specific combined household income based on the household size.
So for a one to two-person household, the combined household income must be less than $39,440. For a three-person household, it would be $49,720, and for a four-person household, it would be $60,000. Find an application and more information on applying HERE.
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