In 2022, the U.S. saw record increases in natural gas prices that directly affected the production costs of electricity across the country. Considering wholesale purchased power costs make up nearly 70% of customer electric usage charges, we know you felt the impact. Looking forward, projections indicate we should see less-volatile swings in purchased power costs making it easier to plan for utility expenses than it was in 2022.
In addition to higher-than-normal wholesale purchased power expenses, costs of necessary commodities, such as wire, transformers, piping and other infrastructure equipment more than doubled in 2022 with no reductions in the foreseeable future. Due to these increased costs, it is necessary to adjust base usage rates in both electric and water with minimal impact to monthly billings.
What does this mean to you as a residential customer?
The following demonstrates the incremental impact to your utility billing based on kWhs or gallons of water used (as examples).
Residential Electric – Additional Billing Impact
500 kWh usage = $2.30
1,500 kWh usage (AC usage levels) = $6.90
Residential Water – Additional Billing Impact
3,000 gallons used = $0.42
8,000 gallons used (summer watering levels) = $1.18
Other operational cost increases are reflected in the monthly service fee with a net increase of $6 per year for residential electric customers and less than $5 per year for residential water customers.
What does this mean to you as a non-residential customer?
- Only Commercial Service will see a net increase in electric monthly service fees with an annual impact of $6.00. General and Industrial monthly service fees have not changed.
- Electric usage fees and demand charges have increased approximately 4% in commercial, general and industrial rate classes.
- Water service fees will increase across all meter sizes, as well as water usage rates. Please see the water rate brochure below for specific changes.
New Residential EV Rate
- There were no changes to the Residential EV Rate.
The 2023 SPU Electric and Water Rate Brochures are available below.2023 Electric Rates 2023 Water Rates
Note it is the combination of individual usage rates and fees 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.