Many markets have been affected by rising costs and the utilities industry is no exception. Increased purchased power costs, widespread material shortages and higher input costs result in SPU electric and water billing changes in 2022. Overall increases in our billing charges are necessary to continue to provide our customers with exceptional response times, quality utility services and the highest level of reliability SPU has consistently provided.
We know last year’s higher electric power cost adjustments (PCA) during “high bill” season were difficult for many of our customers. Unfortunately, economic indicators are projecting even higher wholesale power costs in 2022. In an effort to reduce these spikes for our customers, SPU is transferring a portion of the PCA cost to our base energy charge.
The PCA will not be eliminated, but the impact of significantly higher purchased power costs during the summer season will be spread across 12 months instead of 3-4 months.
What does this mean to you as a residential customer?
- You will see a slightly higher monthly service fee in both electric and water, with an impact of $6.00/year in electric billing and less than $5.00/year in water billing.
- Water usage rates have increased 12¢ to 15¢ for every 1,000 gallons used, depending on rate. At 4,000 gallons used per month that is an impact of $5.76-$7.20 per year.
- Your electric base kWh energy charge will look higher because it includes a portion of the PCA, but you should see less in your PCA charge than you have previously – especially during your summer energy bills – unless wholesale costs go even higher than anticipated.
NOTE: PCA charges are driven by our power supplier, MMPA, and are passed through to our customers. Our goal is to minimize the excessive spikes of the summer months when PCA’s could previously represent 30% or more of your energy charges.
What does this mean to you as a non-residential customer?
- Only Commercial service will see an increase in electric monthly service fees with an annual impact of $6.00. General and Industrial monthly service fees have not changed.
- Water service fees will increase across all meter sizes. Please see the water rate brochure below for specific fees.
- Water usage rates have increased 11¢ to 13¢ for every 1,000 gallons used, depending on rate. Irrigation usage rates increased by 15¢/1,000 gallons used.
- Base kWh energy charges have been adjusted to include a portion of the PCA.
- Demand charges increased from $9.50 to $9.70 per kW.
New Residential EV Rate
- Customers can charge their EVs during off-peak times for significant savings!
- Between the hours of 10:00 pm – 8:00 am energy charges are 50% of standard residential energy charges – only $0.0570/kWh.
- Any charging outside of these hours will incur a premium rate of $0.2500/kwh.
- A separate meter is required for EV charging service. Expenses associated with electrical wiring for this service are the responsibility of the homeowner/customer.
- This meter will be billed as a separate account.
- Apply for EV Service
The 2022 SPU Electric and Water Rate Brochures are available below.
It is the combination of individual rates within these brochures that create your monthly utility billing, plus the sewer and storm drainage fees SPU bills on behalf of the City of Shakopee. Questions related to sewer and storm drainage charges can be directed to the City at 952.233-9300.2022 Electric Rates 2022 Water Rates