2024 Danvers Electric Rates
On December 12, 2023, the Municipal Light Board discussed electric rates for 2024. The discussion was broken down into two components: increases (primarily from inflation and material costs) and the need to strengthen the electric capital improvement program.
The board voted to approve an increase in the operational portion of the residential rate from $0.148 per kWh to $0.161 per kWh. This adjustment is essential to support ongoing investments in technology, infrastructure upgrades, and sustainable energy sources, all of which are critical to meeting the growing energy demands of our valued customers. The increase will result in an average increase to the average monthly bill of 750 kWh by $9.75 per month.
The rate on residential electric bills is comprised of two components labeled “energy charge” and “fuel charge.” The energy charge rate of $0.094 will remain the same and will not be increased. The energy charge rate is used to cover the cost of owning, maintaining, and operating the Town’s electric grid as well as a small portion of the fuel supply, $0.0245 per kWh. In 2024 $0.013 per kWh of the fuel supply portion of the energy charge rate will be reallocated toward the “fuel charge.”
The fuel charge (Purchase Power and Fuel Adjustment), which covers the cost for Danvers Electric to purchase electricity on the wholesale market and have it delivered (transmitted) to Danvers, will be increased from the current rate of $0.054 per kWh to $0.067 per kWh, which is slightly higher than the January 2023 rate of $0.065 per kWh.
During this meeting, the Board voted to keep the customer charge rate the same as in 2023.
“We understand the impact of the electric rate increases on our customers, and we want to emphasize that this decision was made with careful consideration to ensure the continued reliability and sustainability of our energy infrastructure. We remain committed to providing transparent communication, exceptional service, and investing in technologies that will contribute to the continued reliability of our electric infrastructure” said Utility Director David Lane.
Danvers Electric rates are set to cover our costs and not to generate excess revenue or profit. Current regulations require Danvers Electric to return any excess fuel costs collected during the following year to the customers. This return of funds is included in the rate calculation each year.
In accordance with the approved Danvers Electric Rate Policy, the Municipal Light Board reviews the fuel charge each month by comparing costs and revenues to projections. In June, full rate calculations and projections are performed to look at the year-end forecast. A mid-year rate adjustment is considered at that point, if necessary.
If you have further questions regarding Danvers Electric or your electric rates, please visit our website or call 978-774-0005.
