|Timothy J. Power, CEO
Last month I explained how power costs, namely demand charges, are a key component of DS&O’s finances. This month I want to summarize results of our recently completed cost of service study.
The study results show DS&O is about 4% short in revenue for all rate classes combined. Ideally, we want to make sure every rate class brings in enough revenue to cover its associated costs. The study showed that while there are a handful of individual rate classes that do “carry their weight”, most rate classes come up short.
Since the six residential rate classes make up over 70% of DS&O’s revenue, that is where we will initially direct our focus. The other rate classes will be addressed later, probably in 2017.