Public Utilities Board Approves Rate Adjustment
The City of Alameda’s Public Utilities Board (Board) voted 5-0 to approve the fourth year of Alameda Municipal Power’s (AMP) five-year rate adjustment plan for all customers. The average overall rate increase of 3.25 percent is effective July 1, 2013.
The actual percentage of the increase will vary depending on the customer’s rate class. A typical residential customer with an average monthly bill of $53.04 can expect to see an increase of approximately $2.64 to his monthly bill. Rates for commercial customers will vary from 0-5 percent based on electric use.
The five-year rate adjustment plan was the result of a financial assessment in 2010 that showed that revenue increases were needed due to higher power transmission costs not controlled by AMP, replacement of a long-term power contract expiring in 2014 with a new contract that is significantly more expensive, and increased operating expenses. This year’s rate increase is also the result of cost-of-service analysis AMP conducted in 2012 to determine the costs of providing electricity and service to various customer classes. The results of the analysis found that AMP’s residential and commercial rate classes require adjustments over the coming years to ensure that the costs of providing service are fairly distributed across customer rate classes.
AMP continues to offer residential rates that average nearly 22 percent lower than neighboring cities like Oakland and San Leandro, and commercial rates that average nearly 10 percent lower. These lower rates help ensure that an additional $10 million per year stays in Alameda. And AMP provides electricity that’s far more reliable than that of its neighboring communities.
As a community-owned and locally operated electric system, AMP continues to maintain competitive rates while directly contributing to the City of Alameda’s economic well-being and quality of life. The revenue from electric sales in Alameda goes toward operation of the system and then to improving community services and quality of life for residents through annual transfers of over $4 million to the city’s general fund.
AMP also offers a variety of programs and services for customers who are interested in controlling their energy costs or who are having trouble paying their utility bills. For those interested in lowering their energy usage, AMP offers a number of energy efficiency programs and rebates to help customers save money and conserve energy. Customers can also request a free energy audit to learn how to manage their energy usage and reduce costs.