On January ninth we told you that the Public Utilities Commission had ordered a decrease in electricity rates that worked out to about a 12% reduction in the average light bill. Well, since then they had to delay implementation of that decision because BEL successfully showed that they hadn’t complied with the procedural requirement of inviting public comments. Well they did that, and now the revised decision is even more favorable to consumers. It lowers the average rate by about 15%! PUC Chairman John Avery today explained that it’s all about cheaper fuel prices.
John Avery, Chairman – PUC
“We had expected that by this time oil prices would have been around $50 a barrel. As you can see it hovers just around $40 so when we looked at it again we decided to make a further downward adjustment because the price of oil hasn’t been moving up as quickly as we expected it to back in January when we issued that first amendment.”
Jules Vasquez,
What does this now mean for consumers, Friday’s decision?
John Avery,
“Well what it means is that compared to the rates that were approved June 26th of 2008, the rates basically have been reduced overall by approximately 15%. And it is across the board, across all customer classes; residential, even the social rate has been given a reduction in this case.”
Jules Vasquez,
I know that you all had invited comments from the public. Has BEL written in objecting to the new rates?
John Avery,
“Well BEL objected to the final decision and really it is an amendment to the final decision. They appealed the final decision, they appealed the amendment we issued January 6th, and so we expect them to appeal this one also.”
Jules Vasquez,
How much in additional earnings has BEL realized from the fact that the rates remained high throughout the last quarter of 2008 even as fuel prices plummeted in that last quarter? How much do they have in reserve so to speak for consumers?
John Avery,
“Up until November, at the end of November the balance that BEL collected in excess of what they spent on power for this Annual Tariff Period was $12.84 million. We expect that by the end of December that would have been around $17 million.”
Jules Vasquez,
That is money that BEL basically has for consumers?
John Avery,
“Yes, BEL isn’t entitled to that. That is the cost of power, by law it is a pass through cost item. BEL isn’t available to suffer any losses or to make any mark-up on the cost of power.”
Jules Vasquez,
But they also have interest free money.
John Avery,
“Well look at it this way Jules, there was in the past, there were times that the CPRSA, we owe them, granted there was an interest charge but that was a decision made by the Commission at the time.”
The rates are retroactive to January first, which means that the difference should be credited to your account. Read the full decision at PUC.bz.
