City electric rates likely to rise
Electric customers in Clintonville may see an increase to their bill sometime this summer. An electric rate study was completed and a rate case adjustment has been submitted to the Public Service Commission (PSC). The electric utility last filed a rate application with the PSC in 2006.
City Administrator Lisa Kuss explained that the desired rate of return for a utility should be around seven percent. The utility is audited annually to calculate the rate of return. At the end of 2010, the city's electric utility was seeing a -.96 percent return, so the city began looking into rate adjustment options.
The City Council authorized a study by Schenck SC. The cost of this study was not to exceed $15,000, and Schenck reported on the city's electric utility with exhaustive documentation. Schenck's recommendation to the council was to proceed to the PSC and request a rate adjustment.
The actual impact to electric bills is not known at this time, as the PSC has not yet made their decision on whether or not to grant the city's rate adjustment request. "At this time, the average increase will probably be about 1.98 percent; we can't really say a dollar amount yet until we hear back from the PSC," Kuss stated. "The city has 10 different rate classifications, so the rate changes are not distributed evenly to each class. For example, the increase for industrial customers will likely be different than the increase for a single household." Separate purchased power adjustment calculations will be done for larger industrial customers such as Walker Forge and Creative Converting.
Kuss also explained that the city will be shifting their on-peak/off-peak hours, per Schenck's recommendations. Currently, the city's on-peak hours run from 6 a.m. to 10 p.m. and off-peak hours are from 10 p.m. to 6 a.m. The City of Clintonville purchases its electric power from Badger Power Marketing Authority (BPMA), whose on-peak hours are from 8 a.m. to 8 p.m. and off peak hours are from 8 p.m. to 8 a.m. The city will shift its on-peak/off-peak hours to match BPMAs.
The rate study conducted by Schenck includes system capital needs identified in the 2008 System Study by Forester Electrical Engineering to improve the system reliability and ability to make maintenance improvements. Schenck is also working with the city to establish borrowing options for a 3-year electric utility capital projects plan.
If the PSC approves a rate adjustment, it will likely take effect in June or July.
City Administrator Lisa Kuss explained that the desired rate of return for a utility should be around seven percent. The utility is audited annually to calculate the rate of return. At the end of 2010, the city's electric utility was seeing a -.96 percent return, so the city began looking into rate adjustment options.
The City Council authorized a study by Schenck SC. The cost of this study was not to exceed $15,000, and Schenck reported on the city's electric utility with exhaustive documentation. Schenck's recommendation to the council was to proceed to the PSC and request a rate adjustment.
The actual impact to electric bills is not known at this time, as the PSC has not yet made their decision on whether or not to grant the city's rate adjustment request. "At this time, the average increase will probably be about 1.98 percent; we can't really say a dollar amount yet until we hear back from the PSC," Kuss stated. "The city has 10 different rate classifications, so the rate changes are not distributed evenly to each class. For example, the increase for industrial customers will likely be different than the increase for a single household." Separate purchased power adjustment calculations will be done for larger industrial customers such as Walker Forge and Creative Converting.
Kuss also explained that the city will be shifting their on-peak/off-peak hours, per Schenck's recommendations. Currently, the city's on-peak hours run from 6 a.m. to 10 p.m. and off-peak hours are from 10 p.m. to 6 a.m. The City of Clintonville purchases its electric power from Badger Power Marketing Authority (BPMA), whose on-peak hours are from 8 a.m. to 8 p.m. and off peak hours are from 8 p.m. to 8 a.m. The city will shift its on-peak/off-peak hours to match BPMAs.
The rate study conducted by Schenck includes system capital needs identified in the 2008 System Study by Forester Electrical Engineering to improve the system reliability and ability to make maintenance improvements. Schenck is also working with the city to establish borrowing options for a 3-year electric utility capital projects plan.
If the PSC approves a rate adjustment, it will likely take effect in June or July.
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1 Comment for "City electric rates likely to rise
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When I read that the rate hadn't been increased since 2006, I thought that had to be impossible.
But now that I read that the city has been ripping off its customers, by charging premium rates for off-peak electricity - now it all makes sense.
lastpercentile Feb 22, 2012 1:30 PM