First, if you are unfamiliar with Bountiful City and Bountiful Light & Power, see theses posts. Effectively, the City uses it’s power company as a defacto taxing entity in an effort to maintain an approximate $2.0 – $2.2 Million transfer into in its general fund each year.
Last September, I blogged about Bountiful City increasing power rates (again). At that time, the City stated that power rates would increase for consumers about $4.85/month. What they didn’t say at that time was that they were also increasing the customer charge by $0.20/month. Based on the quote, the previous figure does not appear to include the increased customer charge. If that is the case, Bountiful will receive an additional $35,162 (0.2*12*14651) into it’s coffers on top of all the other increases. Note this figure is likely a low estimate as it does not include businesses but is limited to residences.
As things stand right now, Bountiful’s kWh rate is $0.092494 while Rocky Mountain Power’s (RMP) average rate is $0.080514 (weighted for the seasonal rate change and assuming 800 kWh monthly use*). Prior to this increase, Bontiful’s rates were 10% higher, now Bountiful is running 15% higher than RMP. While a slight improvement, Bountiful’s customer charge remains 12% higher than RMP’s customer charge (it used to be 33% higher) but keep in mind that the kWh rate will bring in more money than manipulating the customer charge.
Finally, remember that Bountiful Light & Power receives no oversight by the Public Service Commission and doesn’t have to turn a profit, pay stockholders, and, I believe is exempt from federal/state taxes. Rocky Mountain Power does have those costs and still keeps its rates lower.
*Note: using the high 800 kWh lowers the rate difference between Bountiful and RMP. Reducing to a 600 kWh rate results in a 17% difference, and 400 kWh results in a 23% difference.