Electricity rates in 2018 will remain flat, thanks to an abundant supply of inexpensive electricity from hydroelectric plants along with recent revenue growth from our business sector. This is in contrast to a series of recent rate increases made necessary by four years of drought that sharply reduced hydroelectric generation.
The Santa Clara City Council adopted our proposed budget on June 13, 2017. The budget also reflects the ongoing cost of replacing aging infrastructure such as power poles, meeting the rising power transmission costs and replenishing reserves drawn down to buffer our rates during the drought.
Holding to a zero rate increase is contingent upon legislators in Sacramento defeating a California Senate bill that would negatively impact our rates. SVP and other municipal utilities are working to educate legislators about the benefits of maintaining low rates for customers.
In addition to the abundance of hydroelectric power, our diverse power resources such as wind, geothermal, solar and the City’s local modern natural gas plant provide managers with cost-effective choices to meet energy demand in the City. Our zero rate increase is in contrast to other nearby electric utilities that are raising rates by as much as 10 to 11 percent.