EPUD Rate Updates
March 2013 Update:
The EPUD Board of Directors approved an average 3% rate increase at the board meeting on February 13. The decision came after input from EPUD staff Citizens Advisory Committees, and as well a public hearing to consider any public comment or concern. The increase will be effective April 1, 2013
and will increase the bill of the average residential Customer-Owner an additional $3.50 per month. The residential basic charge will increase from $12 to $13, while the residential usage rate will increase from $0.0764/kWh to $0.0783/kWh.
Why are rates increasing?
The rate increase is needed to keep pace with rising costs of power and maintenance to EPUD’s distribution facilities. EPUD customer usage also continues to decline, particularly in the industrial sector, and these revenues are no longer available to help cover fixed costs. During the second quarter of 2012, lower revenue forecasts resulted in EPUD facing a six percent rate increase in 2013. Staff took action and made substantial adjustments to their operating budget, including position eliminations and expense deferrals. The resulting 2013 budget allowed EPUD to significantly lessen the rate increase by 50 percent.
Why is the Basic Charge increasing?
A Basic Charge is a fixed charge that covers a portion of the utility’s costs that occur regardless of energy use. These costs are actual costs and regardless of energy consumption or size, these costs still exist. These costs are shared by all customers and include a portion of the cost of providing power (from the substation to the meter), meter reading, billing, repayment of long-term debt, public relations, communications, and general administration. EPUD periodically analyzes how large the basic charge should be to effectively cover these fixed costs. In our most recent study, it was found that the basic charge should be much higher than it currently is. The increase from $12 to $13 is an effort to bring the basic charge more in line with our actual fixed costs.
The bottom line… EPUD has worked hard to avoid rate increases, but cost pressures make it unavoidable. As a nonprofit public power entity, EPUD provides power to you AT COST. We raise rates only when necessary to cover the cost of providing power. EPUD rates remain among the lowest in the Eugene – Springfield area. Rate increases have been an unfortunate trend region-wide.