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DME raises rates again
06:55 AM CDT on Tuesday, May 20, 2008
Electric rates in Denton are rising again — just in time for warmer weather.
The Public Utilities Board on Monday approved a rate increase that will add $22 to the average household’s monthly bill starting June 1. The move came just weeks after the board approved a rate hike that tacked $10 to the average bill, effective April 1.
The Public Utilities Board on Monday approved increasing Denton Municipal Electric’s two energy cost adjustment rates. The standard energy cost adjustment rate will rise from 3.8 to 6 cents per kilowatt-hour. The renewable energy cost adjustment rate, charged to customers of the GreenSense Renewable Energy program, will increase from 4.1 to 6.3 cents per kilowatt-hour. A typical household using 1,000 kilowatt-hours during a monthly billing cycle can expect to see an average increase of $22 on the electric portion of its utility bill.
SOURCE: Denton Municipal Electric
Officials blamed the increases on soaring natural gas prices. They base electric rates partly on the cost of power-generating natural gas and coal.
“Fuel costs are simply going up so rapidly that we’d be in the hole if we didn’t move to cover it,” said Charldean Newell, chairwoman of the board, which oversees rates for Denton Municipal Electric.
Residents paying utility bills at City Hall East on Monday afternoon criticized the increase.
“With summer coming on, I think the timing could be better,” Ted Jones said. “It does seem to be too soon for another one.”
The board usually considers electric rates quarterly, and its next regular review wasn’t expected until June. But board members can consider the rates month to month when needed, said Lisa Lemons, a spokeswoman for the city-run power provider.
“We hate that we have to raise the rates but that’s something we have to do to be able to meet our customers’ demands, to be able to keep the lights on,” Lemons said. “And as soon as the prices [of fuel] go down, we’ll bring our rates back down.”
Denton’s electric market is not open to competition among power providers. But Lemons said even with the coming rate increase, Denton’s standard residential rate would be below the North Texas average.
Lemons encouraged customers to conserve energy, especially during the summer. The utility offers free online or in-person energy audits for those wanting tips on cutting their energy use.
“I think anytime you have a rate increase … it’s a stress, and we understand that stress,” Lemons said. “That’s why we want to provide that education.”
Resident Lindsay McGregor said she’s already trying her best to conserve energy. The rate hike will force her to cut back even more, she said.
“It pretty much sucks,” she said. “But I feel like there’s really not a whole lot I can do about it.”
LOWELL BROWN can be reached at 940-566-6882. His e-mail address is lmbrown@dentonrc.com
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