Electrical District No. 3 will lower its rates by 5.16 percent starting in January.
The announcement came after the ED3 board of directors approved its 2016 budget Wednesday.
“We’re excited about it,” said General Manager William Stacy.
Stacy said the rate change will affect residential, commercial, agricultural and small industrial. There was one large industrial customer that had its rate reduced a year ago that is unaffected by the new rate.
He said ED3 had not raised rates since 2008 and will now have rates 7.9 percent lower than Arizona Public Service.
“We had some of our projects completed, like a 500 kV transmission line that runs through here,” Stacy said. “We have a transmission agreement with APS, and that will lower transmission costs.”
A new contract with Salt River Project and the 2014 formation of the Southwest Public Power Agency, providing additional power resources, also was an economic benefit. “And we wanted to pass that onto the customers,” Stacy said.
Growth is also helping ED3. Subdivisions are filling in, and Stacy said the company hooks up 25 new customers a month.
“The rates should stay steady for the next few years,” he said.
When the new rates go into effect in January, ED3 will be celebrating its 90th anniversary.