Alameda Municipal Power's Budget Is Approved With No Rate Changes
June 23, 2020
by Taelor Bentley
Posted June 23, 2020
The city of Alameda, California’s Public Utilities Board (PUB) recently approved Alameda Municipal Power’s (AMP) budget of approximately $65 million with no rate increases for customers.
Throughout the 2021 fiscal year, which begins July 1, 2020, customers will see no change in the electric rates they pay.
AMP noted that its budget reflects the priorities set by the board through its adopted strategic plan and the annual budget workshop held in April 2020
Due to the utility’s strong financial outlook, the board decided not to raise electric rates during a time when AMP customers are facing economic hardships caused by COVID-19.
AMP is projecting an increase in purchased power costs, transmission costs, and other operating expenses such as labor and strategic plan initiatives. As presented at the Board’s annual budget workshop in April, the increased costs will be paid out of AMP’s existing reserves.
Major initiatives for the 2021 fiscal year include powering new construction projects at Alameda Point, replacing substation breakers, and moving forward with the undergrounding program to bury overhead utility lines.
Since AMP is a community-owned and locally operated electric system, the utility does not make a profit on rates. The revenue from electric sales goes toward operation of the system and then to the community through annual transfers of $5.5 million to the city’s general fund for valuable community services.
AMP rates average 20% less than those of neighboring communities, saving Alamedans a total of $15.5 million. On January 1, 2020, AMP began providing 100% clean energy to all customers.
AMP’s 2021 fiscal year begins on July 1, 2020 and will end June 30, 2021.