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Town told of possible double-digit AVCE generation charge increase starting Oct. 1; staff to reassess procurement options
Summary
Staff warned Apple Valley Choice Energy (AVCE) customers may see a generation charge increase around Oct. 1 of about 10%, possibly up to 12.6%, with longer-term scenarios that could be larger; the town said it will work with AVCE leadership and consultants to seek parity or savings for customers.
Town staff reported that Apple Valley Choice Energy’s generation charges are expected to rise next billing cycle and asked the council to accept adjusted projections and direct staff to monitor procurement options.
AVCE staff said the near-term increase would be on the generation side and that the town’s estimate at the time of the staff report was roughly 10 percent, though they later noted it could be as high as 12.6 percent. “We are predicting at the time of the... staff report about 10 percent increase, basically bringing us back to where we were previously… What I have recently come to learn is that the increase could actually be upwards of 12.6% on the generation side,” AVCE staff said.
Staff promised to evaluate procurement and rate strategies with AVCE’s executive director and outside consultants to maintain parity or savings for customers and to return with recommendations. Council members asked for a later presentation explaining where the increases originate and what steps the town can take to protect residents.
What happens next: Staff will analyze procurement options with AVCE and provide a follow-up presentation to the council on the causes of the projected increases and possible mitigations.
