Denton residents can expect to see an increase in their electric bills starting next month, as the City Council has approved an adjustment to the Energy Cost Adjustment (ECA) rate. This increase, which will begin to take effect on August 1, will see the ECA rate rising to $0.0515 per kWh from its previous $0.0447 per kWh. For the typical household consuming around 1000 kWh per month, this translates to an average monthly bill increase of $6.80, according to the City of Denton, Texas.
Earlier this year, in March, the Denton City Council established an ordinance to periodically review and potentially adjust, the ECA rate every quarter. The ECA is a fluctuating figure attached to each kilowatt-hour (kWh) that reflects the varying costs of power generation and fuel. This approach is designed to ensure the rate mirrors these costs accurately and is adjusted when state prices for power generation and fuel experience change.
The most recent decision for a hike in the ECA rate was made during the Council's July 16 meeting. According to the City of Denton, Texas, the new rate is intended "to better reflect actual costs and forecasts associated with the ECA." Denton Municipal Electric (DME), the entity impacted by the rate change, will, along with the Finance & Accounting departments, reassess the ECA balance and rates once more come September 2024 to decide if further changes are warranted.
DME holds a reputation in the Texas energy market for its low-cost, reliable, and 100% renewable energy, a point of pride that's been confirmed by comparisons with other renewable and municipal-owned plans. Despite the rate adjustment, DME has committed to continue providing sustainable energy solutions to the Denton community. For more details or inquiries, DME's External Affairs Administrator/PIO, Stuart Birdseye, can be directly reached via email at [email protected] or by phone at (940) 349-8009.
