2023 DISTRICT ENERGY UTILITY RATES

efficient operation of the system and higher than originally projected energy efficiency of the residential buildings, more customers can be serviced by the two existing geo-exchange fields. This makes the system less sensitive to changes in electricity and natural gas price, and allows for postponed capital investments for new low carbon energy sources. Taking into account these factors, ADEU's residential rate could increase by 1.0% in 2023 without significantly impacting its overall financial performance. ADEU's commercial area (Area A) is serviced by a system which is more sensitive to changes in electricity and natural gas prices, while the OVDEU and CCDEU systems are earlier in their operational life and still require significant capital investments in low carbon energy sources to connect more customers and ensure low carbon objectives are achieved. Additionally, due to the nature of their current energy sources, the costs to run these utilities are more sensitive to changes in electricity and natural gas prices as well. Once all costs are considered, the costs for these utilities are projected to increase 6.5% in 2023. Due to these reasons, a 6.5% rate increase would ensure all capital and operating costs are sufficiently recovered while still ensuring rates remain competitive with customers using energy from a conventional utility system.

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