Pioneer Energy electric rate increase proposed

In the shadow of a string of recent Pacific Gas & Electric rate hikes, the Pioneer Community Energy board is considering raising rates for electric generation. A decision on an increase could come Monday, when the board of the local-government partnership meets in Auburn. At its May meeting, the board voted to have Pioneer staff bring back details on plans that would see rates for all customers increase an average of 17 percent — but still be 5 percent lower than PG&E electric generation rates. Since forming in early 2018, Pioneer Energy has consistently stayed with rates below PG&E. During that time, it has also increased its customer account numbers to 79,500 — an 89.6. percent participation rate. Pioneer — partnering the cities of Auburn, Colfax, Lincoln and Rocklin as well as Placer County and the town of Loomis — was formed to provide electricity at lower, more stable rates, as well as other energy related benefits for residents and businesses inside the county. Roseville city has its own similar entity and is not part of Pioneer. Jenine Windeshausen, Placer County treasurer and a driving force in establishing Pioneer as a lower-cost alternative to PG&E, said that the new rate plan would help build a more solid financial foundation for the partnership while keeping rates lower than PG&E's. Under the rate proposal, revenues from electricity would rise from $71.5 million during the 2018-19 budget year ending this month to $92.3 million. The cost of electricity is projected to rise to as much as $66.5 million from this year's $61.5 million, with more energy cost increases possible in the coming year, Pioneer projects. Increased revenue will allow Pioneer to keep up with increased costs and also keep building up its emergency fund to offset potential future energy price spikes, Windeshausen said. Operational costs are expected to increase from $3.76 million to about $6.5 million while debt paydowns and contributions to the rate stabilization fund to offset price hikes would amount to $1 million and $3 million respectively. Pioneer's proposed rate adjustments would go into effect July 15. The meeting, which includes an opportunity for members of the public to speak on the rate proposal, is to start at 3:15 p.m. Monday at 175 Fulweiler Ave. in Auburn.