ANZA – Effective June 1, 2016, Anza Electric Cooperative, Inc. will make changes to its residential rates. The new rates will reduce bills for all monthly residential members below 1,000 kilowatt-hours. Simultaneously, higher energy tier rates will increase slightly to accommodate the costs of system improvements for additional demand capacity on our distribution system.
The following new rate schedule will apply to all Residential (Domestic D-1) accounts: Tier 1 (0-400 kWh) $.13 per kWh, Tier 2 (400-700 kWh) $.14 per kWh, Tier 3 (700-1000 kWh) $.16 per kWh, Tier 4 (1000-2000 kWh) $.17 per kWh, Tier 5 (above 2000 kWh) $.188 per kWh. All Residential (Domestic D-2) accounts will see an increase in demand charges from $9.25 per kW to $15 per kW on all demand exceeding 15 kW per month.
“Typical bill impacts will be very limited,” says AEC General Manager Kevin Short. “78 percent of our members will see their bills reduce by a few dollars each month, while higher use accounts with high demand will see an increase. This change is necessary to pay the cost of an expansion in our import capacity due to several recently added high demand accounts on our residential D-2 rate. Our elected Board of Directors feels strongly that, since our existing rate structure is based upon cost causation, the correct method to recover this cost is by shifting the burden to these accounts.
“For example, a 400 kWh bill will reduce by $2.80. A 700 kWh bill will go down by $3.40. This is about our system average-sized residential bill. Even a 1,000 kWh bill will enjoy a $2.50 lower monthly cost. At 2,000 kWh, which is about three times our average, the increase is limited to $10.50 per month,” added Short.
The import capacity increase will expand AEC’s system from 14 Megawatts to 19 Megawatts total demand capability. This expansion, which actually consists of upgrades to the Southern California Edison interconnection to AEC, will incur additional annual operating costs of approximately $400,000 and take about two years to complete.
AEC representatives will be on hand at two public meetings to discuss the rate change with members April 30 at 6 p.m. at VFW Post 1873, 59011 Bailey Road, Anza and May 9, at 4 p.m. at Anza Community Hall, 56630 Hwy 371, Anza.
For more information, please plan to attend either meeting, drop by the office, or visit www.anzaelectric.org.