June Energy Cost Adjustment (ECA)
Impacted by the global energy crisis, average California energy prices continue to rise. Consequently, the June ECA is much higher than expected - it is a charge of 5.87 cents/kWh. This could add approximately $40 to the average residential user’s electric charges on their June bill from what they may have experienced in prior years. Forecasts for July through September could likely result in additional increases as home energy consumption rises during these hotter months. While the utility has forecasted an overall annual average ECA of approximately 3.5 cents to 4 cents/kWh for the year, the monthly ECA could be higher over the individual summer months. As a result, the average residential customer can expect to see additional monthly energy charges ranging from $30 to $65 from July through September.
California drought conditions worsen decreasing available statewide energy supplies in the coming months and increasing utility reliance on the market. Lodi continues to implement hedging strategies to mitigate real-time price spikes by purchasing forward supplies – however, even forward prices are approaching historic highs. Lodi is placing a high priority on efforts to reduce exposure to market conditions including locking in long-term energy contracts, however, many of those projects are delayed in terms of commercial operation as supply chain challenges continue. Rising prices are affecting ALL California utilities – public and private. PG&E continues to implement rate increases and average residential rates for Lodi remain at least 30% lower than those of PG&E. In addition, PG&E is proposing an increase of at least 15% in 2023 to the average residential user with additional rate increases through 2026.
Lodi Electric continues to encourage customers to conserve where they can and to take advantage of a number of programs and services to help ease utility costs this summer including:
- FREE in-home energy audits including installation of energy and water-saving devices
- Energy efficiency rebates
- One-time bill assistance programs
- Monthly utility discounts for qualifying customers
For more information on these programs and tips on how to save energy this summer, please visit www.lodielectric.com.