ROSEVILLE, Calif. (KTXL) — Roseville Electric customers will see an 11% increase in energy costs starting on Feb. 1, 2023 after the Roseville City Council unanimously approved an 8% electric surcharge during their meeting on Wednesday.

The 8% rate increase is set to expire on Dec. 31, 2024 and is expected to bring in $25 million of additional funding to the utility provider over the 23-month period.

This recent rate increase will coincide with a three percent energy rate increase, scheduled to go into effect on Jan. 1, 2023, that the city council approved in 2021.

Interim Electric Finance Administrator Joanna Cucchi said that while the utility provider has been working to shield itself from the impacts to the global energy market they have seen a 35% increase in power supply costs.

A dramatic increase in natural gas prices, lower hydroelectric generation due to the drought and the war in Ukraine were cited by Cucchi as some of the largest impacts that increased power supply costs.

The utility provider surveyed customers over the fall and summer to see what their concerns were over the then-proposed surcharge.

Cucchi said that some reoccurring concerns circled around customers feeling that new development was a leading cause for the increased rates and what an increase in energy costs will mean for those already struggling with other living expenses.

Cucchi said that the rapid increase in energy supply costs over the last year has been the primary cause and sole cause for the proposed rate increase.

In order to address the issue of customers being unable to afford the surcharge, the utility will be expanding its existing financial assistance programs.

“We are proposing that anyone who participates in our income qualified financial assistance program would be exempt from the 8% surcharge being proposed,” Cucchi said. “This exemption would be funded through our public benefits program.”

An estimated $140,000 from the public benefits fund will be spent annually to cover the cost of the 1,450 customers currently a part of the utility’s financial assistance programs, according to Cucchi.

Roseville Electric will still remain one of the lowest cost energy providers in the Sacramento area when compared with Pacific Gas and Electric (PG&E) and the Sacramento Municipal Utility District (SMUD), according to Cucchi.

Following the rate increase, residential customers with Roseville Electric will be paying on average $130 per month, while PG&E customers could see monthly bills of $266 and SMUD customers at $137.

PG&E commercial customers, depending on their size, could see 43% to 48% higher electricity rates compared to Roseville Electric and SMUD commercial customers could see 6% to 13% higher rates.