Are your electricity costs going up?

CEO, Nancy Lindholm

Message from our CEO - Nancy Lindholm

NOTE: We ran this article in the Business Voice last month, but many businesspeople are still not aware of the change coming in electricity suppliers and costs, so we are publishing it again in December.

Business people are normally very busy operating their companies, not watching city council meetings to find out how much electricity is going to cost them next year. The city of Oxnard has joined the Clean Power Alliance (CPA), which is a community choice aggregation program. It basically means the city has opted to purchase electricity through the CPA versus investor-owned utilities (such a Southern California Edison). Although Edison will still be delivering power through its grid and billing customers, the power rates will be established by the CPA.

In addition to joining the CPA, the Oxnard city council also opted to purchase 100% renewable sources of energy. This is the most expensive type of electricity. The higher rates will be applied to all Oxnard customers – residential and commercial – UNLESS THEY OPT OUT of the 100% renewable rate tier.

The city council received a presentation on October 23 covering three different rate tiers to choose from – 36% renewable, 50% renewable, or 100% renewable. Although city staff recommended they select the 50% renewable tier, the council voted for the pricier 100% option. It is estimated the increase in rates will be 7% to 9% higher.

Again, customers can OPT OUT of these higher rates. The CPA will be mailing two notifications to customers. If the customers do not respond, they will be paying the 100% renewable rate.

Customers can not only OPT OUT of the higher tier rate, but they can OPT OUT of the entire CPA and stay with Edison. However, they must act or they are automatically in the program the city selected.

The target implementation dates are February 1, 2019 for residential customers (who will also receive two notifications) and May 1, 2019 for nonresidential customers.
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So, watch your mail at home and at work to make sure you know what you will be paying for!

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