Alameda Electricity Costs Going Up

Look for the cost of electricity in Alameda to rise again this summer.

The Alameda Public Utilities Board unanimously approved a rate hike of 3.85 percent Tuesday night. It's part of a five-year plan of modest rate increases.

“Our rates continue to be lower than PG&E,” said Girish Balachandran, Alameda Municipal Power’s general manager. “Staffing for AMP is back to 1993 levels. We’re doing more work with less.”

On average, AMP's residential rates are about 24 percent less than power from PG&E, which serves Alameda's off-island neighbors, saysBalachandran.

Last year’s rate increase for electricity was 3.75 percent, and Balachandran says rates will likely rise in the next three years, too. He says the increases are necessary in order for AMP to keep up with the increased cost of transmitting and buying power, as well as with inflation.

"We recognize of course that any kind of rate increase has an impact on our customers," Balachandran said. "This seemed to be the way to have the least impact on the most number of customers while maintaining fiscal sustainability and fiscal responsibility." 

AMP's commercial rates are, on average, 14 percent lower than PG&E's, said Janet Oppio, AMP's assistant general manager for resource planning, and the gap between PG&E and AMP rates will continue to grow.

When compared to other independent utilities, Alameda's rates fall near the middle of the pack, Oppio said. 

"We're very competitive," she said. 

"If we weren't in the position where we are in respect to renewables," said Greg Hamm, PUB president, "I think we would be facing some of the rate hikes that our neighbors are facing. This is a really boring budget and I'm really happy about that. And I think that's a good thing. This is nice."

"The rate increase puts us in a good position to be able to handle future shocks to our system," Hamm said. "I'm very comfortable that the 3.85 percent increase is a well-reasoned way to go."

No members of the public addressed the board during Tuesday's PUB meeting and budget workshop.