In a Facebook post, the City of Safford said they are working to lower the cost of providing electricity. The city purchases the majority of it power from a natural gas-fueled power plant. The cost of natural gas has increased 250% over the past three years, with spot pricing as high as 2,500% in the Southwest United States. The city has been taking steps to mitigate these cost impacts on residential customers, including paying more than $3 million from city reserves, which they cannot sustain. The result has been two rate changes:
Rates in 2022 prior to November 2022:
For Residential
$9 per month base rate
Energy charge is $0.0733 per KWH
Purchase Power Adjuster is $0.023 per KWH
Energy Charge + PPA = $0.0963 per KWH
City of Safford absorbed over $1.2 Million in commodity cost increases prior to rate increase.
New Rate for November 2022:
For Residential
$9 per month base rate
Energy charge is $0.0733 per KWH
Purchase Power Adjuster is $0.055 per KWH
Energy Charge + PPA = $0.1283 per KWH
City of Safford absorbed over $2 Million in commodity cost increases prior to rate increase.
New Rate for March 2023:
For Residential
$9 per month base rate
Energy charge is $0.0733 per KWH
Purchase Power Adjuster is $0.077 per KWH
Energy Charge + PPA = $0.1503 per KWH
The City is fully aware of these impacts to its residents and is currently engaged with multiple projects to lower their dependance on natural gas, and to purchase sustainable, environmentally friendly and cheaper power.
