The city of Lompoc is announcing measured, annual increases in electric rates beginning with the November electric usage and December bills.

The adjustment is necessary, the city said, to ensure the long-term sustainability of the Lompoc electric utility as it invests in infrastructure to support state-mandated electrification efforts.

One of the rates impacted, Residential (D-1) service, will introduce a fixed $5 monthly base charge. The average residential user can expect a $4-$7 increase in their monthly bill per year, over the next five years, an approximate 8% annual increase.

Commercial (A-1) service will introduce a fixed $10 monthly base charge, and the average commercial user can expect a $9-$15 increase in their monthly bill per year, over the next five years, an approximate 3% annual increase.

All increased rates, and the related detailed rate schedules, were in the Oct. 1 meeting agenda packet (scenario 3), and will be available on the city’s website later this month.

As part of the resolution, each adopted rate schedule is subject to a power cost adjustment (PCA) charge which will be implemented on Nov. 1, 2025 and calculated on a rolling 12-month basis each month thereafter.

The PCA allows the utility to adjust the usage rates either up or down based on the utility’s cost to purchase power.

Lompoc City Council adopted the adjustment on Oct. 1, following discussions at the Sept. 17 and Oct. 1 Lompoc City Council meetings.

Prior to an emergency rate increase of 30% in May 2023, city of Lompoc electric rates were billed at the same rates as they had been in 2011.

The newly adopted five-year rate schedule is the result of the City Council’s request that staff complete a cost of service study and rate design to address the long-term financial stability of the public electric utility.

Lompoc’s electric rates continue to be among the lowest in California as compared to other municipal electric utilities, including Pacific Gas & Electric Company (PG&E), Southern California Edison and San Diego Gas and Electric.

With the new rate increase, Lompoc Electric Utility domestic rates are projected to remain 52% below PG&E rates and commercial rates will be about 31% below PG&E commercial rates.

The City of Lompoc Electric Utility has saved its customers an estimated some $250 million over the course of the past almost 40 years, and said it believes these measured increases are necessary to protect the long-term sustainability of the utility so the city can continue to offer residents a publicly-owned and operated power option.