KPUB’s rates are designed to recover the cost of serving each customer class. We purchase power for our customers from diverse, competitive sources to ensure the best possible rates. KPUB is one of the most efficient electric utilities in the State of Texas and the entire country.
Compared to most U.S. residents, KPUB customers save hundreds of dollars a year on electricity.
We are dedicated to providing fair rates to our customers and ensure that when a customer is billed, the charges reflect the actual cost of serving that customer.
To help us do this, we periodically engage a third-party consultant to review the cost of serving each class of customer (residential vs. commercial vs. large commercial) and make recommendations on our rate design.
The study recommended rate design changes, which are detailed below and were approved during KPUB’s September 20 board meeting and at the September 26 and October 10 Kerrville City Council Meetings for residential customers. Commercial rate changes were approved by the KPUB Board at the September 20 board meeting as well.
KPUB Average Residential kWh Pricing Remains the Same
KPUB’s customer charge is a fixed monthly charge that covers our costs for data processing, billing, postage, metering, collections and other administrative costs.
KPUB’s customer charge is increasing from $10.25 to $15.25 for residential customers. This change is a result from a rate study completed in 2018 for a cost-of-service analysis and rate design recommendations. KPUB’s expenses have gone up in our customer charge areas, and this increase is to recover our costs.
A residential KPUB customer using an average of 1,000 kWh will have no overall rate impact from this because costs in other areas of our rate structure are decreasing. KPUB’s 10.25 cent kWh pricing (based on 1,000 kWh of consumption) remains the same with the new rate restructure.
KPUB’s distribution and power supply costs are decreasing for residential customers. Our residential rate structure is comprised of three components that will appear under the detail of electric charges on your monthly bill: power supply charge, distribution charge and customer charge.
A sample residential rate breakdown for 1,000 kWh is below with the new November 2023 rate restructure.
| Sample residential rate breakdown for 1,000 kWh | |
| Power supply charge* | $70.45 |
| Distribution charge | $16.80 |
| Customer charge | $15.25 |
| Total due for service | $102.50 |
* Power supply charge varies. KPUB does not generate our own electricity—we purchase it from diverse power suppliers. Accordingly, our tariff (rate) is based on a fixed rate + a variable rate that can fluctuate with actual power supply costs. The variable portion is called the power cost adjustment factor (PCAF).
Other Rate Changes
KPUB’s commercial customers will see an increase in their customer charge. The rate change will be: $31.50 for commercial service (CS, previously $22) and $230 for large commercial service (LCS, previously $180). Additionally, the contract commercial service (CCS) rate type was eliminated. Customers on the contract commercial service rate schedule will be moved to the appropriate standard rate schedule.
KPUB’s distribution costs are decreasing for commercial service (CS) customers. For large commercial (LCS) customers, the distribution cost is decreasing, and the demand and power supply costs are increasing. The rate impact will vary based on actual usage and the commercial customer type.
Supporting Rate Documents and Resources
The rate consultant’s cost of service reports and recommendations are presented to KPUB’s board and city council when rates are revised.
Our most recent consultant’s cost of service reports are available here:
- FY2019 Cost of Service Study Report
- FY2019 Cost of Service Rate Design
- FY2019 Cost of Service Fee Schedule
Click here to view KPUB’s complete tariff and service regulations online with these new changes reflected.
Click here to view KPUB’s September 20, 2023, board meeting documents.