According to GPA spokesman Art Perez, the CCU made the decision during its regular meeting Tuesday night.
Perez said GPA management will file a petition with the Public Utilities Commission later this month to receive the final approval to lower the LEAC charge. If the PUC approves the reduction, he said customers can start to see real savings by August 1.
Perez said GPA officials decided to seek a reduction in the LEAC charge because the price of fuel is slowly going down. He said the price for a barrel of fuel has been hovering at an estimated $80 per barrel for the past few months.
Perez said the price has recently dropped to around $70 per barrel.
“There’s nothing to show that fuel prices will rise,” said Perez, noting that GPA officials are confident the PUC will approve the reduction. “This gives GPA the opportunity to lower the LEAC.”
The fuel charge was last increased in February from 12.96 cents per kilowatt hour to 15 cents per kilowatt hour.
Perez said if the PUC approves the reduction during the next LEAC adjustment in August, ratepayers can expect to pay an estimated 8.9 percent less on their monthly bills.
For an average home that uses 1,000 kilowatt hours a month, Perez said their current $219.14 monthly bill could go down to about $199.44 each month.
Provided the price of fuel does not drastically increase before the next adjustment, Perez said a reduction in the LEAC charge is likely.
