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BEL: Rate Reduction Too High
posted (December 27, 2013)
Last week we told you about the PUC's proposal to lower light rates by an average of four cents per kilowatt hour. That's a little more than BEL had suggested - when they asked for a reduction of 3 cents per kilowatt hour - which would save customers approximately $15 million dollars in 2014. The PUC proposals would save consumers another five million dollars. That's 5 million less in revenues for BEL, but the company issued a release today to say it can manage even that.

But what the power company does have problems with is what's known as the proposed tariff basket, which the company says in a release today would further erode its operating margins.

The company says the projected revenue from the tariff basket as it's set up by the PUC will generate $23.5 million dollars less in revenue than what's expected from the current electricity rates. BEL says this would "significantly impact the Company's ability to finance its operations and the quality of service delivered to customers."

BEL has put this position formally to the PUC and says it remains open to consultation on the matter. The new rates go into effect on first January.

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