DENTON, TX, March 20, 2024 – Denton City Council has approved a significant update to the billing structure for customers of Denton Municipal Electric (DME), marking the first rate increase the utility company has seen in over seven years. The new rates are scheduled to take effect from April 1, 2024, and are a direct response to the rising costs associated with energy production and transmission.
This adjustment in rates comes amidst increasing expenses in the ERCOT (Electric Reliability Council of Texas) Market, attributable to statewide regulatory changes that have affected the cost of energy across Texas. Additionally, there has been an uptick in the transmission costs that DME incurs, payments made to other transmission system owners for their investments in enhancing the ERCOT grid’s capabilities and stability.
Despite these adjustments, DME assures its customers that they will continue to enjoy some of the lowest average monthly bills in comparison to those of other municipally owned utilities across the state. The rate increase is set to impact both residential and commercial customers. The expected changes to monthly bills, based on annual averages, are as follows:
- Residential Customers will see their average electric bill for 1000 kWh usage climb from $106 to $130.
- Small Business Customers are estimated to experience an increase from $148 to $174 for 1,101 kWh usage.
- Medium Business Customers, with 13,7171 kWh usage and 48 kW demand, will see bills rise from $1,361 to $1,691.
- Large Business Customers will face an increase from $28,002 to $36,258 for 342,406 kWh usage and 867 kVA demand.
The city has informed customers to expect these adjustments in their billing statements starting in April. To assist residents in estimating their new monthly bills based on average usage, DME has made a Residential Bill Calculator available.
In light of these changes, DME remains dedicated to its mission of providing the Denton community with reliable, safe, and sustainable energy. The utility continues to pride itself on being one of the lowest-cost providers of 100% renewable energy in comparison to other renewable and municipally owned plans in Texas, underscoring its commitment to sustainable energy practices within the region.