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CAPACITY AUCTION PRICES & RISING ELECTRIC BILLS
The Village of Yellow Springs Electric Distribution works hard on residents’ behalf, yet not all aspects of electric industry services are within our control. One provision of electric service is called capacity, and it is slated to increase customers’ electric bills starting in June.
The cost associated with capacity is paid by customers who rely on the market for the electricity they use, and Yellow Springs’ share of capacity costs is determined by how much electricity we use on the days with the highest electric demand in our region.
It is expected that, for our community, the increased cost for capacity will be about a little more than 1 cent per kilowatt-hour (kWh) starting in June 2025, adding an additional $8.99/month to customers’ bills, or about $107.92 over a 12-month period, based on average usage of 875 kWh per month.
We understand that rising rates affect household budgets, and we strive to keep rates manageable. If you have any questions, please reach out to our utility office.
The Village of Yellow Springs Electric Distribution works hard on residents’ behalf, yet not all aspects of electric industry services are within our control. One provision of electric service is called capacity, and it is slated to increase customers’ electric bills starting in June.
Our local electric system is part of a regional grid that ensures reliable power, even on the hottest and coldest days. Power plants are paid to be available 24/7, and this availability is called "capacity." The price for capacity is determined by an annual auction, and the most recent auction saw significant price increases, leading to higher costs for most electric utilities.
The chart in the graphic shows how capacity costs are impacting Yellow Springs’ overall rate. The white bar shows how much capacity adds to your bill, whereas the red bar accounts for capacity credits Yellow Springs receives from participation in, and ownership of, generation projects.
We understand that rising rates affect household budgets, and we strive to keep rates manageable. If you have any questions, please reach out to our utility office.
