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Danvers Municipal Light Board Meeting – 12/21/2021 8:30am

Posted on December 16, 2021


The Danvers Municipal Light Board (MLB) will be holding a meeting on Tuesday, December 21 at 8:30am located at the 2 Burroughs Street Conference room. During this meeting, the Danvers MLB will discuss the updated electric rates for the year 2022. This discussion will include an ongoing topic related to the electric customer charge, represented as “Customer Charge” on Danvers Electric bills, which was implemented in March of 2021.

 

The Customer Charge is now standard in the electricity industry, primarily due to the widespread use of renewable and alternate energy sources. Based on a 2020 Cost of Service Study commissioned by the MLB, the customer charge was introduced earlier this year on bills at $7.50 per residential customer (or roughly 30% of the charge recommended by the study).

 

Electric service is comprised of two key cost drivers: purchasing power and the infrastructure that delivers power to homes.  The customer charge is intended to cover or offset, the costs associated with infrastructure, which is a fixed cost.  This charge is a fixed rate that does not fluctuate with usage but is subject to periodic review and adjustment by the MLB. The ongoing use and rate of this customer charge will be discussed.

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