ELECTRIC RATE INCREASES EXPLAINED

To help you understand the recent increases you may have seen on your utility bill, we have put together the following timeline and information associated with the recent increases:

The Board of Commissioners of the Water, Light and Sinking Fund, the governing body of Dalton Utilities, approved the electric rate increase that went into effect for all customer classes, for all consumption, on March 1, 2022.

The Fuel and Emissions cost adjustment (FCA) changes quarterly. The 2nd quarter FCA (April-June) was based on 1st quarter natural gas prices. The 3rd quarter FCA, which starts in July, is based on 2nd quarter natural gas prices, which were 66% higher than 1st quarter natural gas prices.  This directly affects Dalton Utilities’ cost to purchase electricity, and this is the reason for the increase in residential bills during the 3rd quarter. (Please see our website for more detailed information about F & E) https://www.dutil.com/fuel-emissions-costs-explained/

Additional Information:

  • Natural gas price increases directly affect the cost of electricity.  Natural gas is used in steam turbines and gas turbines to generate electricity.
  • Temperatures have been high in recent weeks; therefore, your HVAC units will be required to work that much longer and harder in order to achieve the same level of cool in your home.
  • Check out our website to find tips on how to conserve energy in your household. www.dutil.com
  • As energy costs fluctuate and our costs are reduced, these cost reductions will be passed on to you, our customers. Dalton Utilities works to manage costs that are within our ability to control.
  • Our rates remain favorable compared to others in the community.
  • This is a pass-through expense from Dalton Utilities to our customers.  Dalton Utilities will not see increased profit margins as a result.