Energy Cost Adjustment changes coming into effect

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IID front yardIMPERIAL - As part of the 2014 budgeting process, the IID Board of Directors recently approved a plan to float the Energy Cost Adjustment and use rate stabilization funds to offset increasing fuel, purchased power, transmission and other energy-related expenses.  

 

“This modification does not change the base rate; however, it increases the ECA from 3.24 cents to 3.70 cents effective Feb. 1, 2014,” said chief financial officer Greg Broeking.  “On March 1, 2014 the ECA is forecasted to remain at 4.15 cents for the remainder of the year.”

 

Following is a chart of the anticipated impacts this will have on the average residential customer’s bill:

 

Month

Average Monthly kWh Consumption

Current Bill

New Bill

Monthly Impact

January

739

$85.47

$85.47

$0.00

February

652

$75.82

$78.82

$3.00

March

632

$73.61

$79.36

$5.75

April

684

$79.42

$85.65

$6.23

May

1052

$120.21

$129.79

$9.58

June

1430

$162.08

$175.09

$13.02

July

1770

$199.77

$215.88

$16.11

August

1886

$212.60

$229.77

$17.17

September

1834

$206.77

$223.46

$16.69

October

1309

$148.64

$160.55

$11.91

November

767

$88.58

$95.56

$6.98

December

688

$86.03

$86.03

$6.26

 

 

The ECA is applied to all electric accounts and applicable special contracts on a per kilowatt-hour basis.

 

Staff presented several options to the board as part of the budgeting process that included the use of rate stabilization funds to minimize customer impacts. In total, the district expects to use as much as $33 million from the rate stabilization reserve fund in 2014.

 

For more information, please visit www.iid.com.