The Cost of Service Study showed that large commercial and industrial members do not need an increase in their Customer Charge and like all members will receive a reduction in their energy rate. The average large business member uses 61,131 kWh per month, and with the proposed rate changes will save approx. $375 per month.
The proposal is for the small commercial business Customer Charge to be raised from 23.75 to 34.58, however, the rate per kWh to drop from $0.103487 to $0.096777. What does that mean? The $10.83 increase in the Customer Charge will be offset when a small business uses about 1,600 KWH in a month. The average small commercial member used 953 kWh per month last year, so that would mean the business’ Customer Charge increase of $10.83 would be somewhat offset by the $6.39 decrease in energy costs resulting in an increase of $4.44 for an average month.
Historically, the Customer Charge for small business has been very low - roughly the same as a residential member, meaning the charges have been less than equitable. The proposed rate case brings small businesses closer to paying their fair share.