During the last few days of January, through Feb. 2 the region experienced historic freezing temperatures. Coupled with other global circumstances natural gas prices once again spiked. Typically, fuel purchases average $3 per Dth; however, during this cold snap, prices reached levels of over $50 per Dth. The result was significant losses to both the City of Leesburg’s Natural Gas and Electric Utilities. As of Jan. 31 the Natural Gas Utility experienced a fuel loss of nearly $1 million and the Electric Utility experienced losses of approximately $2,300,000.
The City of Leesburg is owned and operated as a not-for-profit public utility system, when fuel prices increase beyond reasonable budgetary estimates, additional funds are needed to cover daily utility operating expenses. Therefore, effective Feb. 1, the Gas Utility increased the fuel portion of the rate structure by $0.15 per therm. Effective March 1, the Electric Utility will be forced to increase the Bulk Power Cost Adjustment (BPCA) to $0.03 per kWh. Keep in mind that the process of raising and lowering fuel costs allows the resale of energy at a consistently low price.
By adjusting fuel rates, Leesburg Utility customers can expect average consumption charges to increase as follows:
• Electric – 1,000 kWh residential will increase to $137.97, up from the current $130.47
• Gas – 16 Therms of usage will experience an increase of approximately $2.50/month
When weather conditions return to normal ranges, it is anticipated that the natural gas market will correct itself, returning prices to pre-freeze ranges. As this occurs, it will be reflected in your utility bill. Please understand the management at Leesburg Utilities does all it can to provide you the lowest cost energy with exceptional service, and regularly performs as one of the most reasonably priced utilities in the region.
Leesburg Electric and Gas will continue to monitor fuel and other costs with the ultimate goal of ensuring that customers are receiving the lowest possible rate for their energy needs.