Explanation of Graduated Facilities Charge

The Facilities Charge covers the cost of specific infrastructure and business services required for each metered connection. The revised graduated Facilities Charge, previously approved by the Energy Commission, reduces costs for lower usage residential customers and slightly increases the overall cost for those who consume the highest number of kilowatt hours (kWh) per month.

The Graduated Facilities Charge is based on each customer’s average daily kilowatt hour (kWh) consumption over the previous 12 month period, which would be reassessed monthly updating the Annual Rolling Average.  It is revenue neutral to BELCO and will not provide any additional profit to the utility.

Please note: When a customer moves location, a new account is created.  All new accounts are automatically assigned to the median tier Graduated Facilities Charge (Tier 3=$39.95) for the first month so that the average daily kilowatt hour (kWh) consumption can be determined for the new location (as no historical trend exists).  The account is then assigned to the appropriate Graduated Facilities Charge in the second month to align with actual average daily kWh consumption recorded during the first month (see below).

The only exception to the proposed Graduated Facilities Charge is for customers on BELCO’s Net Metering Programme who will remain on a fixed $39.95 per month charge. Customers on the Net Metering Programme draw energy from the grid when needed and intermittently sell excess power back to the grid when their consumption is less than what is being produced by their personal renewable energy systems.

The cost of Net Metering is subsidised by all rate payers, including lower usage customers whom this proposal is targeted to help. It would be unfair for rate payers to further subsidise customers already benefiting from the Net Metering Programme.

Graduated Facilities Charge Based on Annual Rolling Average of kWh Consumed Monthly

*Projected average for each tier of customer usage, individual results will vary.

  Daily kWh Usage

Facilities Charge

 Tier 1

0-10 kWh per day $20.00
 Tier 2

10-15 kWh per day

 Tier 3

15-25 kWh per day

 Tier 4 25-50 kWh per day $62.50
 Tier 5 50+ kWh plus per day $95.00
Net Metered Customers -- $39.95