The good news: the Imperial Irrigation District now has a floating energy cost adjustment rate, which was lowered at the beginning of the year, meaning lower energy bills for customers.
The bad news: last year the district overcollected nearly $38 million.
District staff gave its update on the December ECA rate, bringing out the full amount overcollected last year.
The ECA, a fluctuating charge to electricity customers, rises and falls with the price of fuel to deliver power. Since 2006 it was fixed at 5.01 cents per kilowatt-hour, but the board took action last year to drop it and move toward a fluctuating rate again.
Since July when the ECA rate was set at 4.19 cents per kilo-watt hour the district has overcollected about $20 million, most of it in September, October and November, said Sondra Ainsworth, controller with the energy department. In December the total overcollected was $2.65 million.
Add to the six-month number the about $17.7 million that was overcollected between January and June, the total reaches about $37.7 million, she said.
However, between July and November, the district has saved customers about $15.6 million with the lowered rate, she said.
That number has continued to fall, as the board approved lowering the rate again starting at the beginning of this year.
The ECA was lowered to 3.24 cents per kilowatt-hour, said IID General Manager Kevin Kelley. It is now floating and the rate will be brought back to the board on a quarterly basis to be readjusted.
The new lowered rate will save a house that consumes about 1,500 kilowatts per month $12.65, Ainsworth told the board. For a larger energy use, like 2,000 kilowatts per month, it saves about $17 dollars for each energy bill.
Making that energy rate float again is good news for the energy customers, said IID Board President John Pierre Menvielle. And the money that has been overcollected is going to be put to good use, he said. It may be going into some of the capital projects, but there is still $100 million in a rate stabilization fund that will be used to keep the ECA stable.
Board Vice President Matt Dessert agreed that the change is good. It will better reflect the cost of energy and fuel, he said.
Staff Writer Elizabeth Varin can be reached at evarin@ivpressonline.com or 760-337-3441.
The bad news: last year the district overcollected nearly $38 million.
District staff gave its update on the December ECA rate, bringing out the full amount overcollected last year.
The ECA, a fluctuating charge to electricity customers, rises and falls with the price of fuel to deliver power. Since 2006 it was fixed at 5.01 cents per kilowatt-hour, but the board took action last year to drop it and move toward a fluctuating rate again.
Since July when the ECA rate was set at 4.19 cents per kilo-watt hour the district has overcollected about $20 million, most of it in September, October and November, said Sondra Ainsworth, controller with the energy department. In December the total overcollected was $2.65 million.
Add to the six-month number the about $17.7 million that was overcollected between January and June, the total reaches about $37.7 million, she said.
However, between July and November, the district has saved customers about $15.6 million with the lowered rate, she said.
That number has continued to fall, as the board approved lowering the rate again starting at the beginning of this year.
The ECA was lowered to 3.24 cents per kilowatt-hour, said IID General Manager Kevin Kelley. It is now floating and the rate will be brought back to the board on a quarterly basis to be readjusted.
The new lowered rate will save a house that consumes about 1,500 kilowatts per month $12.65, Ainsworth told the board. For a larger energy use, like 2,000 kilowatts per month, it saves about $17 dollars for each energy bill.
Making that energy rate float again is good news for the energy customers, said IID Board President John Pierre Menvielle. And the money that has been overcollected is going to be put to good use, he said. It may be going into some of the capital projects, but there is still $100 million in a rate stabilization fund that will be used to keep the ECA stable.
Board Vice President Matt Dessert agreed that the change is good. It will better reflect the cost of energy and fuel, he said.
Staff Writer Elizabeth Varin can be reached at evarin@ivpressonline.com or 760-337-3441.
