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The Roseville City Council voted 4-0 on Wednesday to approve Roseville Electric’s, two-year, rate adjustment plan.  The second reading of the ordinance by the City Council is tentatively set for June 7.

Following approval of the second reading, the rate adjustment will be effective July 7, 2006 and July 1, 2007.


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Roseville Electric officials will update the City Council early next year ย– prior to July 1, 2007 ย– on the energy market and electric’s financial forecast. 

Roseville Electric proposed the new rates to offset rising energy and construction costs.  Since July 2005, energy costs have risen dramatically ย– nearly 60 pecent. Without rate changes, Roseville Electric estimates it will have a $20 million operating deficit at the end of  fiscal year 2007-08.

 The adjusted rates ensure the City’s 49,000 electric customers will continue receiving award-winning reliable energy and dependable service at competitive rates.  Even with the adjustment, Roseville Electric’s rates continue to be the lowest in the Sacramento region, and among the lowest in California. 

Residential Customers
Beginning July 7, 2006 residential customers will see a $1.50 adjustment in the basic service charge, from $5 to $6.50, and a 4 percent adjustment in energy consumption rates.  For the average residential customer, it amounts to a $4.19 change to an average monthly bill. 

 In July 2007, the basic service charge will change by $1.50 to $8 and the energy consumption charge would be adjusted by 4 percent.  For the average customer, it would be a $4.35 change in an average monthly bill.   

Commercial Customers
The rates for the various business customers will also change effective July 7, 2006. Small commercial customers will see a 5.3 percent adjustment in energy charges and in July 2007 the energy consumption charge will change by 6.3 percent. 

 Demand charges for medium commercial customers will be adjusted in July 2006 by 40 cents per kilowatt, plus a 4 percent energy rate adjustment this year.  In 2007, the demand charge will change by 46 cents per kilowatt, plus a 5 percent adjustment in energy consumption charges.

 Large commercial customer rates will see a 54-cent per kilowatt adjustment in the demand charge and a 4 percent adjustment in energy rates in July 2006.  In July 2007, the demand charge adjusts by 60 cents per kilowatt and energy consumption rates increases by 5 percent.

 New Development
Roseville Electric will also begin collecting full reimbursement from developers (Contribution in Aid of Construction) for the cost of building electric infrastructure in new residential and commercial projects.    

Study
Roseville Electric will also begin a study to determine if additional developer fees are needed to pay for the expansion and rehabilitation of the City’s electric distribution system.