Rates for residential electric service will increase by approximately 10% for all bills issued after September 1, 2008. A residential customer using 500 kWh per month will see an increase in their bill from $56.20 to $61.75, or an additional $5.55 per month. Customers in other rate classes will see similar increases.
Despite the September 1, 2008 rate increase, our residential electric rates for 500 kWh customers remains about 28% less per month than the
$86.31 charged by the neighboring electric utility.
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Why Are Costs Rising?
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* A large percentage of power purchased by SELCO is generated by burning natural gas and oil.
* The price of natural gas and oil has increased significantly since last year.
* Wholesale power costs in New England have skyrocketed due to rising fuel costs.
* The cost SELCO pays to owners of transmission lines to move the electric energy from the generation source to Shrewsbury increased significantly in June.
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Additional Rate Increases on the Horizon
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* Low-cost power supply contracts signed by SELCO in 2002 will expire in 2009.
* New power supply contracts will be at significantly higher cost.
* The cost for electricity is expected to increase by an additional 20% over the coming year.
* Additional SELCO electric rate increases are expected in 2009.
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Reducing the Impact of Rising Costs
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* SELCO has recently purchased joint ownership interest in a wind turbine project in the Berkshires as a small hedge against future power supply cost increases.
* Residents can conserve energy at home and increase energy efficiency by looking for the Energy Star logo when shopping for lighting, electronics and appliances.
* Call Home Energy Loss Prevention Service (HELPS) at 1-888-333-7525 for a free home energy audit. |