2024 Rate Changes
Effective January 1, 2024, LRES will implement rate changes across all classes. In each rate class, the average customer will experience an increase of approximately 5%.
Since LRES was established in 2017, rates across all classes have remained unchanged. However, at this time, there has been significant general inflation. In particular, there has been a 20% operational cost increase since 2019, a 38% increase in average material costs since 2017, and a 13% wholesale natural gas price increase since 2018. Due to these factors, a rate increase is necessary to continue to provide our customers with safe and reliable natural gas service.
In addition to the rate increase, there will also be an anticipated decrease to the Purchased Gas Adjustment (PGA) amount you have previously seen on your bills. The PGA enables LRES to adjust the amount you are charged each month to reflect the actual cost of the natural gas you used. Depending on wholesale market conditions, this value can be an adder or a subtractor to your bill. In total, the 5% rate increase is attributable to a 7.9%-8.7% rate increase across all rate classes, but 2.9%-3.7% of the increase should be offset by a forseen decrease in the PGA.
Please view the graphics below showcasing a breakdown of the monthly bill for each rate class. Each breakdown is based on the average monthly usage for that specific rate class. Additionally, there is also a rate card that provides an overview of all rate changes.
As a final note, LRES has locked into historically low natural gas prices through 2028, and we will continue to make every effort to keep rates as low as possible for our customers. Thank you for allowing us to serve you!