The Milford City Council approved a new three-year electric rate design at its May 8 meeting.

The new city of Milford electric rates go into effect June 1. For upcoming summer and winter rates, the average reduction is 3 percent.

Customers may notice a change in their monthly facilities charge. The charge is a fixed monthly charge that is intended to cover the cost of supplying power to customers. Costs include the personnel, equipment, parts, etc. needed to do regular maintenance on the electric distribution system and the periodic upgrades and repairs that ensure the reliability customers have come to know. In addition, this charge provides the city with an adequate reserve fund to pay for system improvements or emergencies.

A recent study found that the revenue from the monthly facilities charge was not covering these fixed costs. In the past, some of the revenue needed for operations was collected through the electric rate. Going forward, the charge will grow to cover the fixed costs and the electric rate will reflect reduced electric costs.

To ease the impact of this change, the charge will increase over three years, rather than all at once. For residential customers, the charge will increase from the current $4 to $8 June 1. Even with this change, most residential customers will still see lower electric bills this year.

For information, call 422-6616.