Napoleon electric customers have received some good news in recent weeks that will help lower costs some now and in the future.
On Monday, Napoleon City Manager Joel Mazur told the Napoleon Electric Committee and the Napoleon Board of Public Affairs (BoPA) that usage of electricity has been up recently, which translates to lower supply cost for the city and thus a lower rate for users.
Earlier in the year, when much of the economy was completely shut down due to the COVID-19 pandemic, usage nearly disappeared for large industrial users, though residential usage increased slightly.
That led to higher monthly rates based on the three-month rolling average used by Napoleon to formulate the monthly rate. In addition, the city twice transferred $100,000 from the electric fund to try to offset the rate increase.
Mazur said usage is more back to normal now and should be moving forward.
Last week, Mazur told the Northwest Signal users were able to shave peak usage by about 1% this year, which should result in a savings of about $206,000 on the city’s purchased power next year.
“This savings will be passed on to customers through rates next year,” Mazur told the Signal.
“We did good, it was worth it,” he added.
During times when electric usage is expected to be extremely high, particularly during hot summer months when air conditioning will be run, the city will ask residents to take steps to reduce usage during peak times, which are 10 a.m. to 8 p.m. in the summer.
Mazur told the Signal the savings would be about $17,000 per month on the overall costs next year.