Recent claims that the City of Colton faces a $24 million deficit in its electric utility are inaccurate. While power supply costs surged in 2023, leading to a projected shortfall at that time, the City took proactive financial measures, including spending reductions, reserve transfers, and a temporary Power Cost Adjustment (PCA), all to stabilize the utility’s finances. As a result, Colton is not currently operating under a $24 million deficit.
On February 24, 2025, the City of Colton City Council held a Special Meeting to review a cost-of-service study for the City’s Electric Utility. This study ensures that electricity costs are fairly distributed among customer classes - residential, commercial, and industrial - and that rates align with the cost of service. The full presentation can be found online.
Key Takeaways:
- Rate Stability: Colton’s base rates have remained steady or decreased since 2009, while investor-owned utilities (like Edison) have increased rates by over 100% during the same period.
- Market Volatility Impact: Rising power supply costs in 2023 led to a Power Cost Adjustment (PCA) of $0.085 per kWh to maintain financial stability. The PCA applies equally to all customers based on usage.
- Planned PCA Sunset: The PCA is expected to be set to zero in October 2025, coinciding with base rate adjustments.
- Projected Rate Revenue Adjustments: Beginning in Fiscal Year 2026, rate revenue adjustments are planned at 3.0% (FY 2026), gradually decreasing to 1.0% (FY 2029).
- Customer Support Programs:
- Senior-citizen low-income discount: 37%
- Other income-qualified customers: 25%
- Increased funding for energy efficiency programs and rebates.
- Competitive Advantage: Even with adjustments, Colton residents will continue to enjoy an electricity cost advantage of 40% over investor-owned utilities and 30% below the statewide average.
The City of Colton prioritizes serving its community, balancing rate adjustments with resident and business needs. The City remains committed to efficiency, cost control, stable rates, financial stability, and delivering safe, reliable, and competitively priced electricity.
Public comment is invited at:
- Utilities Commission Meeting: March 10, 2025, at 6 PM
- City Council Meeting: April 15, 2025, at 6 PM
For more details, visit our website: City of Colton Electric Utility.
DOCUMENTS FOR REVIEW