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For Immediate Release •
November 20, 2009
Staff Contact: Bill Ewer,
Longmont Power & Communications, 303-651-8793
View the most recent Press Releases.
NOVEMBER 20, 2009 - Longmont Power & Communications (LPC) has proposed an overall electric rate increase of 9.8% for 2010. A public hearing on changes to electric rates is scheduled for November 24 at 7 p.m. in Council Chambers. If approved, the new rates will be effective on January 1, 2010. Customers will see the new rates reflected in February utility bills.
LPC is a non-profit utility owned by the City of Longmont.
LPC’s proposed rate increase reflects the increased costs of providing electric service. The wholesale price of electricity, which Longmont purchases from Platte River Power Authority, will increase by 6.2% in 2010. City Council has already approved, as part of the 2010 City budget, an increase from 7% to 8% in the franchise fee that LPC pays to the City General Fund. LPC will also incur increased costs for capital projects, renewable energy, energy efficiency and environmental programs in 2010.
Based on a 2009 cost of service study, LPC has proposed the following increases for each customer rate class:
- Residential, 11.0%
- Small commercial, 12.3%
- Large commercial, 8.6%
- Industrial, 7.0%
LPC has also proposed an increase in the premium rate for renewable energy sold under a voluntary program that enables consumers to purchase electricity generated from renewable resources such as wind and landfill gas. The wholesale cost for renewable energy will increase 58% in 2010. LPC has requested an increase in the retail rate from 1.52 cents to 2.33 cents per kilowatt-hour.
Longmont electric rates will remain among the lowest in Colorado and the nation. In 2008, the average cost of electricity for all Longmont customers was about 37% below the Colorado average and 45% below the national average. According to a July 2009 Colorado Rate Survey by the Colorado Association of Municipal Utilities, Longmont has the lowest electric rates for residential, small commercial and large commercial customers. The Longmont rate for industrial users is second lowest in the state.
LPC also has many rebate and incentive programs to help residents and businesses improve energy efficiency and reduce utility bills, including home and commercial energy audits, discounted compact fluorescent light bulbs, appliance rebates and others. Visit the LPC web site at www.ci.longmont.co.us/lpc for more information.
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