The Denton City Council has approved an increase in the Energy Cost Adjustment (ECA) rate for Denton Municipal Electric (DME) customers. The adjustment, effective August 1, raises the ECA rate to $0.0515 per kilowatt-hour (kWh) from the previous rate of $0.0447 per kWh. This change reflects updated cost assessments and forecasts related to the ECA. For residential customers, this adjustment is expected to result in an average increase of $6.80 per month, assuming a monthly usage of 1000 kWh.
The adjustment follows an ordinance passed by the council in March 2024, which allows for quarterly reviews and adjustments of DME’s ECA rate. The ECA is a variable rate component designed to recover costs associated with power generation and fuel. These costs can fluctuate based on changes in the state’s energy market, and the ECA rate is adjusted quarterly to reflect these variations.
DME, known for being a low-cost provider of 100% renewable energy, will undergo another review of the ECA rate in September 2024. The Finance & Accounting departments will assess the ECA balance and recommend any further adjustments if necessary. DME emphasizes its commitment to providing reliable and sustainable energy to the Denton community.