No, we have modeled these rate design changes to be revenue neutral meaning OCEC should not receive more revenues from our membership compared to status quo.
Rates-Priority 1
The COSA study identified the following rate classes as being out of alignment with the cost of service:
Rate Classes Paying Less Than Cost of Service
- General Service 1 (G1)
- Irrigation Single Phase
- Irrigation Three-Phase
- Idle Service
Rate Classes Paying More Than Cost of Service
- General Service 2 (G2)
The OCEC Board approved the following rate changes:
January 1, 2025
- General Service 1 (G1) – Increase energy rate by $0.0030 per kWh (3.26% increase)
- General Service 2 (G2) – Decrease energy rate by $0.0030 per kWh for tier 1 (4.55% decrease) and tier 2 (3.49% decrease)
- Irrigation Single Phase – Increase energy rate by $0.0050 per kWh (8.90% increase)
- Irrigation Three-Phase – Increase energy rate by $0.0050 per kWh (8.90% increase)
- Idle Service – Increase base charge by $16.80 per month (86% increase)
January 1, 2026
- Irrigation Single Phase – Increase energy rate by $0.0050 per kWh (8.17% increase)
- Irrigation Three-Phase – Increase energy rate by $0.0050 per kWh (8.17% increase)
January 1, 2027
- Irrigation Single Phase – Increase energy rate by $0.0050 per kWh (7.55% increase)
- Irrigation Three-Phase – Increase energy rate by $0.0050 per kWh (7.55% increase)
January 1, 2028
- Irrigation Single Phase – Increase energy rate by $0.0050 per kWh (7.02% increase)
- Irrigation Three-Phase – Increase energy rate by $0.0050 per kWh (7.02% increase)
OCEC’s rate classes are grouped together during a Cost of Service Analysis (COSA) and the cost of the service for that group is compared to the revenues collected from that same class. For each rate class there can be a separation that develops between the cost to provide services and the revenues collected from those services. A “subsidy” can occur when one or more rate classes are paying more than the cost and one or more rate classes are paying less than the cost of those services.