Last night we told you about the PUC's decision to lower light rates by 8% in the new year. It's very welcome news, but to what can it be attributed? Today, the PUC's Electricity Engineer Derek Davis explained that you can thank all heavy rain for the lower rates:..
Derek Davis - PUC's Electricity Engineer
"BEL when they presented their proposal, they suggested a 3 cents reduction. The PUC has decided to have a 4 cents reduction. For every hundred dollars that you spend on your bill, you are now going to spend $92.00, because you get a 8% reduction."
"A number of things happen this year 2013 which caused this situation that we can reduce the rates. The first one being CFE prices, you could say on the average reverse and they went back to normal. In 2011 CFE prices were approximately 30 cents per kilowatt hour. In 2012 it went to 37 cents, In 2013, in went back down to 30 cents. That's the first thing that happened. That is a substantial amount of money that is savings that can be passed on to the public."
"The second thing that happen is that the hydro production, which is energy, let's say 20 cents per kilowatt hour also increased. In other words, it went back to the level that it was in 2011."
The rain also helped lower rates Mexico and the Government negotiated a 10% rate reduction from CFE, the national power supplier in that country.
