But, for those customers who are still struggling with their pay cuts due to COVID, any ease from utility bills would be a welcome benefit.
So, we asked the BEL Board Chairman about where you should set your expectations for any reduction in rates. Here's that part of the conversation:
E. Andrew Marshalleck - Chairman, BEL Board of Director
"You try to project what electricity sales will be in the upcoming year and what the cost of providing that electricity will be in that year and you fix rates by reference to those projections. That's what happens. If the rate that you fix is too low, then it means that BEL had to find monies from elsewhere to cover the cost of providing that energy. If it's fixed to high, then it means that there is a balance by BEL owed to consumers. So you always adjusting, because the predictions will never be perfect. You always carrying a balance into the future. So what it is that over the past many years rates have traditionally been fixed low, so it's always the case BEL has to find resources to cover those costs and this regulatory balance has climbed over the years."
Reporter
"When can a customer realistically see a reduce in their rates which will not hurt BEL?"
E. Andrew Marshalleck - Chairman, BEL Board of Director
"There is an entire methodology that's design to achieve that objective. It's a high sophisticated calculation exercise undertaking by the PUC. They do it every 5 years a full tariff review and then they also review every year an annual review and that's their job, that's their function and rate setting methodology and the formulas the calculations that are done to fix the basket of rates it's something that they have studied and tried to achieve that fair result that you talk about. So the application of the rate setting methodology itself seeks to achieve that balance, because that balance is actually mandated by law. You have to recognize why it is that balance is important, because you don't want to put consumers to unnecessary expense, but you also recognize that the cost of the energy must also be met. BEL is buying power and distributing it to the customers and charging and collecting for it. It's not that energy is free. Energy comes at a cost."
