Electricity rates in Roseville slated to go up with 8% surcharge amid higher costs

The Roseville City Council on Wednesday moved closer to a vote on an 8% energy surcharge for users of the city’s municipal Roseville Electric Utility to offset the rise in energy costs.

The surcharge could begin in February and last through the end of 2024. If approved, it would be the second rate hike after the City Council approved a 3% increase last year. That increase goes into effect at the first of the year.

“Roseville Electric Utility and utilities throughout the country have seen unprecedented cost increases in energy costs. In the 12 months since the last rate proposal, the energy markets have seen price increases of 200% to 300%,” according to a staff report for the meeting. “Due to the magnitude and speed at which these price changes have occurred, the utility is unable to balance its revenues and expenses with the current rates.”

Erin Frye, a spokeswoman for Roseville Electric, said power supply costs for next fiscal year are projected to be “nearly 35 percent compared to what we expected for our rate proposal last year. That equates to approximately $20 million annually.”

On Wednesday, the City Council unanimously approved a second reading for the increase, which is set for Dec. 21 when the council is expected to approve the ordinance.

The 8% surcharge would apply to residential, commercial and industrial customers. However, about 1,500 consumers who participate in low-income, senior and medical rate reduction programs would be exempt through a state-sponsored public benefit fund.

“The proposed eight percent surcharge is only to recover the increase in power supply expenses,” the staff report said. It would not cover the costs of labor, operation or capital investment.

The 23-month surcharge is projected to generate $25 million for the city-run utility.

The cost of electricity for Roseville Electric remains among the lowest in the region. If the second rate increase is approved, the average household’s power bill is expected to cost $132 a month starting in February with the added surcharges. That’s around 65% less than the average PG&E bill, which is $261.

This story was originally published December 8, 2022 at 8:36 AM.