The City of Lompoc announced that residents and business owners will be seeing measured, annual increases in electric rates starting with November's usage reflected in December's electric bills.
City officials say these increases are necessary in order to ensure the long-term sustainability of the Lompoc electric utility, which is investing in infrastructure to support state-mandated electrification efforts.
According to the city, the Residential (D-1) service will start introducing a fixed, $5 monthly base charge; officials say this means average residents can expect a $4-$7 increase in their monthly bill per year over the next 5 years, which is about an 8% annual increase.
Meanwhile, the city reports that Commercial (A-1) service will enact a fixed $10 monthly base charge, which means the average commercial user can expect a $9-$15 increase in their monthly bill per year over the next 5 years. This amounts to an approximate 3% annual increase, according to officials.
Lompoc representatives say increased rates and the related detailed rate schedules will be available on the city’s website later this month.
As part of the new change, officials say each adopted rate schedule is subject to a power cost adjustment charge, which accounts for an upward or downward shift in the cost of purchasing power. This adjustment will reportedly be implemented in November of 2025 and calculated on a rolling 12-month basis each month thereafter.
The City of Lompoc's newly adopted 5-year rate schedule is the result of the city council’s request for a deeper analysis to address the long-term financial stability of the public electric utility, according to officials.
Even with the upcoming increase, city representatives say Lompoc's electric rates are projected to remain 52% below PG&E rates for residences and about 31% below PG&E rates for commercial buildings.
The City of Lompoc reported in a press release that its officials believe these modest, measured increases to rates are necessary so that the city can continue to offer a publicly-owned and operated power option to its residents.
