Farmington Electric Utility System Rates Return to Historically Low Position
The City of Farmington is pleased to announce that the Farmington Electric Utility System (FEUS) rates will return to their traditionally low level following a challenging year, which included the forced closure of the San Juan Generating Station, coupled with extreme volatility in natural gas prices and purchase power. This announcement marks the third reduction in the Power Cost Adjustment (PCA) since August 2023. The PCA recovers the actual cost of fuel to generate electricity and the actual cost to purchase power from the market.
Effective with billing cycles on January 1, 2024 (for the prior 30 days consumption), the PCA will be reduced from $0.0225 to $0.0120. These three-rate reductions combined represent over a 25% reduction in electricity cost for the average residential customer. As illustrated in the chart below, FEUS returns to one of the lowest—if not the lowest rates in the multi-state region.
For more information, please be watching for a special edition of the Mayor’s Table with Mayor Nate Duckett and FEUS Director Hank Adair explaining in detail once again the broader context to the challenges of the last year and what FEUS has done in response to bring your electric rates back down and to keep them there.