The Denton City Council this month approved another rate hike for Denton Municipal Electric customers.
On April 1, the DME rate increased for the first time in seven years, raising the average residential electric bill from $106 to $130 per month. On July 16, the council raised the rate to $0.0515 per kWh, up from the previous rate of $0.0447 per kWh, “to better reflect actual costs and forecasts associated with the” Energy Cost Adjustment rate, the city said in a statement. This new rate hike will mean an increase of about $7 per month on average for residential customers.
In March 2024, the Denton City Council passed an ordinance allowing for quarterly reviews and adjustments to DME’s Energy Cost Adjustment rate. The ECA is a variable rate charged per kWh to recover costs associated with power generation and fuel, according to a news release from the city of Denton. If the state lowers or raises these costs, the ECA will adjust accordingly during its quarterly review. Consistent with the ECA rate schedule, DME and the Finance & Accounting departments will review the ECA balance and rates again in September 2024 and will recommend any necessary adjustments.
