How We Set Electric Rates:

Richland Energy Services (RES) has twelve rate classes for residential, commercial, industrial, irrigation, traffic lights, and cable amplifier customers. Customers are grouped by the type of service they require and the cost to provide service to them.
 
RES staff conducts a cost of service analysis (COSA) annually to determine the revenue needed to purchase wholesale power, keep the distribution system in good working order, and build new infrastructure to meet our customers’ growing needs. The COSA projects the annual revenue RES needs to operate for the next 10 years.
 
Staff presents the COSA results to the Utility Advisory Committee (UAC), an advisory group appointed by the City Council to advise them on policy, planning, financing, and operations of the City’s utilities. In general, if the projected revenue and expenses are relatively equal, staff will recommend no rate increase. If the COSA projects a revenue deficit, staff determines whether or not to recommend a rate increase. Staff always considers using reserve funds and reducing expenses such as delaying capital improvement projects or other budgeted expenses as alternatives to raising rates.
 
Staff recommendations for rates are processed for public input through the UAC and are ultimately decided by the City Council to approve, reject, or modify. Customers can access the current rates and stay up to date on the electric rates process through our website at www.ci.richland.wa.us/EnergyServices, Facebook, and Twitter. UAC and City Council meeting agendas are at https://richlandwa.portal.civicclerk.com/