EL CENTRO â€“ The IID will raise all electric rates an average of 7.43% on January 1st, 2015.
The increase has come about by a cost-of-service study presented to the board on August 19, and to two public rate hearings in October. The study was completed to determine annual revenue requirements, projection of services, and allocation of costs among the customer classes. Some of those classes include residential service, municipal service, and agricultural generating service, etc.
The study was also done to insure future generations are not subsidizing current costs and to maintain IIDâ€™s bond rating.
During the November 3 Energy Consumers Advisory Committee meeting, IID staff received approval of the proposed rate increase by its members.
Some of the challenges of the Energy Department that were cited are:
The costs to comply with that state mandates that continue to increase.
– Procurement of renewable energy to meet 33% requirement by 2020
– Mitigation of environmental issues with San Juan Generating Station
– Reducing the carbon footprint
Other factors include:
– Transmission expansion
– Increased debt service requirements
– Compliance with FERC/NERC recommendations resulting from the September 8, 2011 power outage event
The rate increase will generate approximately $31.8 million in 2015 and enable the IID to continue to provide reliable service, while maintaining a balance with the electric retail rates charged to its customers and recovering costs of providing that service.
Even with the rate increase, electrical rates in the Imperial and Coachella Valleys will still be the lowest in Southern California.
The average ratepayer will find an average increase of $10.20 added to their electric bill.