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Milton rate study recommends reclassification, higher fixed charges and power‑cost adjustment to reduce cross‑subsidies
Summary
A Quanta rate study presented to the Milton City Council found a subsidy flowing from commercial to residential customers and proposed gradual increases in fixed charges, customer‑class reclassification, a power‑cost adjustment and possible debt financing to smooth capital costs including AMI replacement.
Milton — Consultants presenting an electric rate study to the Milton City Council on Sept. 8 proposed reclassifying customers, increasing fixed monthly charges and adopting a power‑cost adjustment to reduce a commercial‑to‑residential subsidy and protect the utility from rising BPA costs.
“The two main findings of the cost study are 1, that there is a subsidy flowing from the commercial customers to the residential customers, and the second finding is the base rates that are currently charged do not fully recover the estimated customer related costs,” Elliot Tanis of Quanta Technology said during the presentation.
Why it matters: Milton’s utility faces rising wholesale and transmission costs and a wave of capital needs — including replacement of aging AMI meters — at the same time the Bonneville Power Administration has introduced new pricing methodology and…
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