Roseville Electric rates up 25%? I thought it was only supposed to be 9%?
Just got my electric bill from Roseville electric.
December 2024 tier 1 rate: $0.1176/kWh
December 2024 tier 2 rate: $0.1568/kWh
January 2025 tier 1 rate: $0.1469/kWh
January 2025 tier 2 rate: $0.1912/kWh
Tier 1 is a 24.9% increase Tier 2 is a 21.9% increase
What’s going on here? I can’t find any news about such a massive rate hike, only that we were supposed to see a 9% increase.
********* Edit**********
Ok, so I heard back from the supervisor and got an explanation that makes sense. Essentially what's happening is the "total bill" should see about a 9% increase. Although the actual Tier 1 rate is going up by 25%, the total bill should only be going up by 9% or so. This is why:
There is an "Energy Cost Surcharge" line item in the bill which is $0.01354/kWh that is being wrapped into the new Tier 1 and Tier 2 rates. We will no longer have this additional surcharge added to our bills. If you add in the surcharge to the previous Tier 1 and Tier 2 rates, you get:
$0.13114/kWh for December 2024 Tier 1
$0.17034/kWh for December 2024 Tier 2
Dividing the new January 2025 Tier 1 rate with the rate above, it's only a 12% increase.
Dividing the new January 2025 Tier 2 rate with the rate above, it's only a 12.2% increase.
Okay, so where does the 9% come from? That's still 12%. See below.
On top of that, the basic service charge of $30 is remaining the same, as are all the other surcharges. These charges make up around 25-40% of the bill each month, depending on usage. Here's a napkin math example trying to make it make sense:
Your bill is $150. 25% of your bill is from service charge + surcharges, that's $37.50. Your Tier 1 and Tier 2 usage was $112.50.
Next month your bill is 9% higher, or $163.50 for the identical electricity usage. You know the service charge and surcharge remained the same at $37.50, so your Tier 1 and Tier 2 usage was $126.
$126/$112.50 = 1.12, or 12% increase in Tier 1 and Tier 2 pricing.