In a presentation to the Easton Town Council, Easton Utilities explained the need for a rate increase to its electric and gas service base rates, mainly attributed to impacts of inflation that can no longer be absorbed. “We only pursue rate increases in order to make necessary capital investments to protect system reliability and to cover our operating expenses which continue to increase,” states Hugh E. Grunden, President and CEO of Easton Utilities.
Under the new rates, a typical residential customer’s electric bill would increase $0.82 per day. A typical residential gas customer would see an increase of $0.25 per day. “Although the base rates are increasing, declining energy charges are helping to offset these increases,” says Steve J. Ochse, Senior Vice President and Chief Financial Officer for Easton Utilities.
Revenue collected from base rates pays for the operation, maintenance, and infrastructure replacements for the electric and gas systems in Easton, but not for the cost of energy itself. As a not-for-profit utility, Easton purchases electricity and gas based on market conditions and passes the cost along with no markup. However, as with all costs, we strive to obtain energy at the lowest cost available.
The last time Easton Utilities presented to the Town Council for a rate increase was 2017. Since then, Easton Utilities has invested $24.5 million dollars in building a more resilient energy infrastructure by replacing and renewing critical components. In addition, the company implements various cost management programs and practices which help mitigate the need for substantial and frequent rate increases. “We limit our requests to increase rates only when it is deemed vital to continuing our operations in a manner consistent with the safe, reliable service our customers have come to expect,” adds Ochse.
The request to the Mayor and Town Council addressed the fact that Easton Utilities has deferred a rate relief request for years instead of frequently applying for rate increases, as can be common practice in the utility sector. “The rate increases we are recommending are well below the overall rate of inflation, and even with these changes our average bills will remain below those of our neighboring utilities,” says Grunden.
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