AGENDA CAPTION:
Title
Consider approval of Ordinance 2024-42, on the second of two readings, amending the rates for Electric Utility Services in accordance with Section 86.177 of the San Marcos Code of Ordinances; including procedural provisions; and declaring an effective date.
Body
Meeting date: September 17, 2024
Department: Utilities and Finance
Amount & Source of Funding
Funds Required: N/A
Account Number: N/A
Funds Available: N/A
Account Name: N/A
Fiscal Note:
Prior Council Action: City Council approved the first reading and held a public hearing on the proposed rate adjustments September 3, 2024.
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Background Information:
The City conducts an annual electric rate study and the results are reviewed by staff and the Citizens Utility Advisory Board (CUAB). The CUAB held a meeting on July 25, 2024, and received a presentation on the estimated revenues and major cost drivers of the electric system. During the meeting, the CUAB voted to recommend a 5.5% effective rate adjustment to electric rates for fiscal year 2025. The recommended increase will cost an estimated $6.97 per month for the average residential user.
There are several cost drivers that necessitate the rate adjustment, including replacing four large pieces of equipment (bucket truck, gas monitors and test stand, ware...
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