It has been reported by KPUB that they are considering a proposed rate adjustment, saying that their last rate adjustment was in 2012. They had a Cost of Service study conducted by Utility Financial Solutions (UFS) which was completed earlier this year and their findings determined that KPUB needed to increase their rates.
It was said that KPUB will implement the new pricing by having phases of smaller rate increases. The first increase of 2.2 percent was approved for October 2018 and the second date of October 2020 will have another 2 percent increase.
“Each customer class is being adjusted differently to align the rates for each class with the cost to serve that class. Commercial and Lighting rate classes will see adjustments ranging from 1 percent to 4.2 percent. The proposed rate increase for the Residential customer class is 2.6 percent,” says KPUB in their announcement.
The increase for customers will depend on how much energy they consume in any given month. According to the Study’s data, an average KPUB residential customer uses about 1150 kWh per month and would see their monthly bill for that usage increase by $2.57 from $99.84 to $102.41. Customers with monthly consumption that is lower than the average will see higher percentage rate increases because of the increase in the fixed monthly Customer Charge.
Added to the announcement, it says that the KPUB Board also talked about “a new Economic Development Rate that could be used to target businesses expanding in Primary Industries, businesses with significant load expansions, and retail, arts and entertainment businesses in the City’s proposed TIRZ district.”
It was noted by KPUB that, “Even with these modest rate increases, KPUB remains highly competitive in rates and is well above industry standards for customer satisfaction. For many years, KPUB customers have consistently paid rates below comparable regional electric power providers. Kerrville is fortunate to have a locally owned electric grid where that community has input into the governance of the utility and where the utility has an interest in seeing the community thrive.”
In the chart below, provided by KPUB shows a comparison of the current and proposed charges for an average residential customer using 1150 kWh in a month:
“When Customer Charge is lower than it should be, customers that use smaller amounts of energy end up not paying their fair share of the cost to serve them at the expense of higher consumption customers. It is important to note that low-income customers are not normally low usage customers. Low usage customers are typically seasonal in nature like vacation homes, cabins, and guest houses.”
If you are in the KPUB Commercial Rate class, you can expect a similar two step adjustment in the monthly Customer Charge, from $12.50 to $22.00 in the first step. The advised charge from the Cost of Service Study was $30.66.
For more information about the proposed rate adjustment for KPUB set to begin the first phase in October of this year, contact KPUB at 830-257-3050 or visit their website at www.kpub.com.