AGENDA CAPTION:
Title
Consider approval of Ordinance 2023-63, 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 19, 2023
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 5, 2023.
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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 27, 2023, 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 minimum 5% adjustment to electric base rates for fiscal year 2024. The 5% adjustment works out to be a roughly 2% increase to the average residential user that will pay an estimated $1.71 more per month.
There are several cost drivers that necessitate the rate adjustment, including replacing two bucket trucks with a three-year lead time ...
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