The 2012 Distribution System budget estimates revenues for 2012 at $45 million which includes a 7% rate adjustment. Operating expenses are estimated at $40.2 million, an increase of 4.6% primarily related to increased power supply cost. The budget anticipates a bond issue to fund long-lived capital additions such as substations and transmission lines. The bond issue will result in an estimated $917,000 increase in interest expense. The 2012 capital budget is $19.6 million, of which $16.9 million is for electrical facilities. Of the $16.9 million, $13.2 million is set aside for substation improvements and new transmission lines. These improvements will prevent overloads, improve reliability, and provide voltage support throughout the southern part of Douglas County.
Although the 2012 Distribution System budget includes a 7% rate adjustment, forecasts indicate a staged increase would be more appropriate, beginning with a 6% increase effective July 1, 2012 and a second 6% increase effective January 1, 2013. There have been three adjustments (2002, 2010 & 2011) to rates in the past 13 years. Normal inflationary pressure is one of the reasons a rate adjustment is currently needed. After applying both proposed adjustments, analysis of 25 years shows the inflation-adjusted cost per kilowatt hour for residential customers would be about the same as in 1989.
The average monthly impact of a 6% increase for a residential customer would be about $3.00. The following graph shows a comparison of the District’s monthly residential electric bill, including the 6% increase, to the bills charged by other public utilities in Washington State.
In addition to inflationary pressure, other reasons for the rate adjustment include:
Commissioners approved the rate adjustments June 11, 2012.
July 1, 2012 Rate Schedule
January 1, 2013 Rate Schedule
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