Mayor Bott proposes elimination of PPAC charge for Brigham City's utility rates

Brigham City is set to eliminate the Power Purchase Adjustment Charge (PPAC) from utility bills, a move that could significantly impact residents' monthly expenses. During a recent government meeting, officials discussed the proposed budget for the fiscal year 2026, which aims to reduce the PPAC from its current rate of 1.25 cents per kilowatt-hour to zero.

Mayor Bott's budget proposal marks a notable shift from previous years when the PPAC was as high as 4.5 cents per kilowatt-hour. This reduction is expected to lower overall utility rates for residents, particularly during peak usage months from May to September. The discussion highlighted that the PPAC has been a standard charge in utility bills, but the proposed changes reflect a new approach to managing energy costs.

City officials explained that the first 400 kilowatts of usage is based on statistical analysis of average consumption among residential customers. This baseline is crucial for determining revenue needs and adjusting rates accordingly. As energy efficiency has improved over the years, there has been a noticeable increase in load growth, prompting a reevaluation of these metrics.

Looking ahead, the city plans to conduct further rate studies to adapt to changing consumption patterns. The anticipated changes could lead to adjustments in the tiered pricing structure, potentially expanding the first tier from 400 to 600 kilowatts as average usage increases.

This proposed elimination of the PPAC is a significant development for Brigham City residents, promising to ease financial burdens while the city continues to adapt to evolving energy demands.