Denton Municipal Electric (DME) is planning a mid-year rate adjustment, affecting all customers from April. The proposed increase will be discussed at the Public Utilities Board and Denton City Council meetings on February 7 and 16. The aim is to recover energy and transmission costs. Factors influencing this decision include the summer 2023 energy costs and increased transmission costs.
In the summer months of 2023, the power cost was higher than expected. DME plans to finance $31.26 million over five years to maintain stability. Other electric providers in the state faced similar costs.
Despite no rate increase in nearly seven years, the proposed adjustment suggests an average residential customer increase of $10.60 per month from April 2024.
The cost paid to other transmission system owners for ERCOT grid improvements has also risen. The proposed adjustment suggests an average residential customer increase of $8.80 per month from April 2024.
The proposed adjustments could raise the average electric bill from $106 to $116 (averaged annually). The final rates will be decided by the PUB and City Council after discussions. Despite the proposed increase, DME remains a low-cost provider of reliable, safe, 100% renewable energy. Its monthly bills are still below the average for Municipally Owned Utilities in Texas.