The first phase of a multiyear Bryan Municipal Utilities (BMU) electric rate plan is scheduled to take effect beginning with bills issued next week. For most local consumers, the plan will result in decreased electric bills.
On August 15, the Bryan Board of Public Affairs approved the first step of a proposed three-year electric rate plan. The electric rate adjustments will become effective with utility bills rendered on or after September 20, 2017.
“Electric rates were last adjusted in 2006,” said Director of Utilities Kevin Maynard. “Power supply costs account for approximately 75% of the typical electric bill. The community’s power supply resources have changed significantly since 2006, with greater investment in generation assets and fewer market power purchases.”
During this time, BMU focused on more environmentally-friendly power supply alternatives, including hydroelectric, solar, wind and landfill gas-to-energy generating projects.
The electric rate plan is designed to be revenue neutral overall; however, the adjustments more accurately reflect the cost of providing electric service to each customer rate class.
Under the new rates, a typical BMU residential customer will see an increased customer charge of $2 per month. However, the effective energy (kilowatt-hour) cost will decrease, resulting in a lower total bill.
“A typical residential customer using 750 kilowatt-hours per month will see a reduction of $4.57 per month or 5% compared to current electric bills,” Maynard stated.
These savings are possible due to a number of factors—revising rates to reflect how today’s power supply costs are incurred, effectively managing peak summer electric demand, and the termination of a number of higher-cost power supply contracts beginning in 2017.
“Our power production staff did an excellent job maintaining and operating the Bryan Power Plant and Auglaize Hydroelectric Plant to minimize electric requirements during this summer’s peak demand periods,” Maynard said. “Staff at the Water Treatment Plant, Wastewater Treatment Plant, Police and Fire Complex, and City Hall reduced electric use during peak demand periods also. We also requested voluntary customer conservation on peak demand days. This cooperative effort will help avoid millions of dollars in transmission and capacity costs in 2018.”
The new BMU electric rates can be accessed on the utility’s website at www.cityofbryan.net.