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There are significant factors that go into determining a rate structure. It is a very fluid and complex process that takes into account some of the following factors:
- Buying and generating power
- Buying renewable energy
- Setting aside funds for the rehabilitation fund and rate stabilization fund
- Providing funds for customer rebates and energy efficiency service
- Compliance reporting
- Fixing and upgrading the existing cables, poles, transformers, and substations
- Developing plans to expand the existing system for new businesses and homes
- Annual community reinvestment for street lights, traffic signals, police, parks and recreation, fire, and libraries.
Roseville Electric energy analysts create multi-year Integrated Resource Plan to understand how much electricity the utility must buy or generate. The forecast also provides an analysis on what the energy will cost, both in the short and long term.
Roseville Electric does both. We buy power – including renewable energy – and also generate power.
We generate power at the Roseville Energy Park when it's more expensive to buy it. We buy power, when it’s cheaper to purchase, than to generate. That’s the way our power plant was designed to operate. It runs when it's cost effective.