MARBLEHEAD — The Light Commission on Tuesday is set to discuss the implementation of rate increases, which are set to begin next week.
The rate increase, which will be effective as of Aug. 1, comes after a predicted loss for the town’s Municipal Light Department of between $650,000 to $700,000, which was determined by the speed of the current rate.
The MMLD’s plan includes ratepayers seeing an increase of 1.5 cents per kilowatt hour in the Purpose Power Adjustment section of the bill.
According to the department’s website, “The PPA is the amount that the MMLD charges to recover short-term and unpredictable costs associated with market conditions related to MMLD’s suppliers,” with an example being the recent increase in fuel prices, which are passed through the ratepayers directly to be reviewed by the PPA.
Another increase in payment residents can expect is an increase from $4.25 to $11.36 on the residential monthly fixed base rate. This will be added to the ratepayers independent usage charge and was created to maintain Marblehead’s electrical infrastructure.
The last rate change for Oct. 2023 — to increase the monthly residential base rate to $18.47.
This rate change would benefit Marblehead’s electrical infrastructure rather than energy consumption.
