Comment Up
The City of Lake Worth was able to reduce electric rates in October 2011 through a comprehensive cost of service study which evaluated the costs per rate class and usage patterns of customers.
One component of the rate structure includes a minimum charge for each rate class based on the base cost to provide service to that rate class. For residential customers this cost is $34.50, for Commercial non-demand customers, the cost is $50.00, and for Commercial demand customers, the cost is $140.00. These minimum charges recover the cost of the infrastructure, metering, and billing required to provide electric service.
The City of Lake Worth was able to reduce electric rates in October 2011 through a comprehensive cost of service study which evaluated the costs per rate class and usage patterns of customers.
One component of the rate structure includes a minimum charge for each rate class based on the base cost to provide service to that rate class. For residential customers this cost is $34.50, for Commercial non-demand customers, the cost is $50.00, and for Commercial demand customers, the cost is $140.00. These minimum charges recover the cost of the infrastructure, metering, and billing required to provide electric service.
The minimum charge is applied when the customer charge ($12.65 for the residential rate class) plus the energy charge (kilowatt hours used) are less than $34.50. Please be aware that residential usage must be below 194 kWh before the charge is applied.
So, not everybody's bill went "UP" by $34.50. .... just those who use less then 194KWh.
So, not everybody's bill went "UP" by $34.50. .... just those who use less then 194KWh.
"a minimum charge for each rate class based on the base cost to provide service to that rate class. For residential customers this cost is $34.50, for Commercial non-demand customers, the cost is $50.00, and for Commercial demand customers, the cost is $140.00. These minimum charges recover the cost of the infrastructure, metering, and billing required to provide electric service." Thats all a heck of a lot of money coming in each month from 16.000 customers! How much do our damned metering and billing employees make?!? As for infrastructure-we're not exactly an untamed wilderness here!!!!
ReplyDeleteNow I am confused. The 'Customer Charge' as of the August 16th regular meeting was $9.90. Now its $12.65 and it is not reflected anywhere on the bill. I don't get it. I have got to suspect that something is very wrong 'in house' for these numbers to be continually changing, yet not show up on the bill breakdown.
ReplyDeleteMost utilities post it on the bills as a monthly meter charge/customer service charge not as LW in saying minimum monthly cost of service charge. When you have the people in charge as in LW anything is possible, they may be assessing the cost for Mark Beauchamp to do his cost of service study, I don’t think anyone in LW has a clue all they see is the opportunity to rake in some extra revenue and say they have reduced rates.
ReplyDeleteOur utility bill does not have a line item for this charge so I am not sure if I believe what you are reporting Lynn. How do we know what the actual electric charge is and what the fees are with this type of billing. I also want to know what we are taxed on. Are they taxing the fees we pay too and what is the rate? The sales tax appears to exceed 6%. I believe that the bills are set up so we suckers have no idea what they are doing and that needs to change. I am working on a petition that I hope folks will sign demanding full disclosure on our electric bills.
ReplyDeleteI am only reporting what the city manager has relayed.
ReplyDeleteNext, my last bill was analysed and there is NO $34.50 cost of service charged on my bill. The bill did not exactly calculate out 100% correctly but again, NO $34.50.
Because of the way it was approved in the budget, there is no guarantee that we won't have a $34.50 in the future. IMO.
We are being SCAMMED!!!
ReplyDeleteI just reviewed my bill, received yesterday. I noticed the bill went up this month, by about $20 which seemed odd to me since its been so much cooler and we've not been running the A/C. Perhpas this is the reason it went up.
ReplyDeleteThe following line items are on the bill, Electric, Power Cost Adjustment Charge, Conservation Surchage, Public Service Tax, Gross Receipts Tax.
Lynn, I simply do not think that the person who developed the billing program is using the rate base that the city proposed and we all are going to get screwed because of it when a real auditor begins snooping around. This may be one of the reasons the CM is so vehemently opposed to the Auditor. I am not too smart, but I am good at math and these numbers simply do not add up.
ReplyDeleteSo, as I understand it, the thrisftiest customers who use less than 194 are really Sc--ewed, then the glorious 200-400 people, get 4% reduction, and then the rest of the crew ger really scr--ed too.....it just doesn't make sense... It really should be itemized.... There is greater than 100% increase in minimum charge! Really?
ReplyDeleteWell, Scott Maxwell thought that increasing the customer charge was a good idea. I was at the meeting/workshop (don't remember which) when he was in agreement with it.
ReplyDeleteLynn, I will forward the rate calculator to you (or you can probably find it yourself at the city website). My customer charge for about 400kwh (I think) was $12.65. I matched my bill exactly to the calculator.
I agree that it should be a line item on the bill. But I also think that the reckless speculation that you not only entertain, but heap onto here, is silly sometimes. People can only process so much information before that start screaming that you're trying to confuse them with too much information. It's happened over and over again . . . from both the public and the dais.
There is no such thing as "too much information." If someone is confused, they ask questions. Our Commission just takes it all in stride, yes, yes, yes, CM.
ReplyDelete