The Board of Directors for California public power utility Imperial Irrigation District in December voted to implement significant changes to the district's Energy Cost Adjustment factor, a move that the utility said would ensure a fairer and more predictable billing model for customers throughout 2024.
During the December 19 Board meeting, IID General Manager Jamie Asbury presented the Energy Cost Adjustment Action Plan, with its main goal being to mitigate billing spikes for customers during summer months of high energy consumption while ensuring that the revenue to be collected will be sufficient to meet the district’s financial obligations.
The action “is intended to help our customers by setting a levelized ECA billing factor so there are no surprises each month when they receive their electricity bill," said Alex Cardenas, President of the IID Board.
Key highlights of the action include:
- Levelize ECA factor collections throughout the year.
- Transition customers enrolled in the Residential Energy Assistance Program and Emergency Energy Assistance Program to average billing to level monthly bills, using Public Benefit Charge funds to assist with the 2024 settlement month.
- Promote average billing for all residential customers, relaxing program parameters to include more participation.
- Create a long-term plan beyond 2024 that includes a holistic rate evaluation and accurate cost of service
The current ECA, adopted in 2015, was initially designed to reflect the variable costs of energy, including the costs of fuel and purchased power.
“However, the events of summer 2023, which include unforeseen market volatility, record-breaking temperatures, unexpected unit outages and transmission disruptions, have highlighted the limitations of the current ECA,” IID said.