Electric bills raise ire in Riverside

By gedward on September 4, 2007 7:44 PM | Permalink | Comments (0)

InstantRiverside.com reports on the recent stir over the city of Riverside's electric rate increase, which began hitting residents' pocketbooks once the summer heat steadily increased energy consumption.

Passed 7-0 by the city council late last year and made effective Jan. 1 of this year, the new 4-tier, residential rate structure -- a doubling from 2 tiers -- was designed to help pay for future energy costs as well as utility expansion and upgrades by charging higher rates to the largest electric users.

The new rates were as follows:

8.8 cents for the first 250 kilowatt-hours
13.1 cents for the next 350 kwh
18.6 cents for the next 600 kwh
23.9 cents in excess of 1200 kwh

(a 100-watt light bulb on for 10 hours burns one kilowatt-hour of electricity)

It was hoped the new structure would also encourage folks to better conserve so as to stay away from the higher rates. However, some say the tiered benchmarks were too aggressive while others say residents simply failed to comprehend the new structure (let alone the need to better conserve). We suspect it's a little of both.

As expected, the city council repealed the top two tiers for further study. Let's hope they come back with a more equitable structure -- possibly a slightly wider spread with 3 tiers vs. 4? -- yet one that still encourages conservation (something we all need to do a better job at).

Regardless of what rate plan eventually comes forth, the city's electric rates will likely remain lower than those of Southern California Edison. Moreover, as a municipal utility, Riverside Public Utility's "profits" stay locally in the form of city funds to be used on local upgrades as well as other public benefits versus ending up in Edison's coffers elsewhere.

Finally, these are the kinds of in-depth reports we've come to expect from InstantRiverside.com and are reports you simply will not find from the LA-based television stations.

Update