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City's summer/winter electrical rates are back
After several decades - over 30 years - of summer/winter rates the city joined a number of cities across the state in Nov. 2002 who were switching to a level rate. The summer/winter rates are based on the fluctuating coast of electricity which historically have been higher during the summer months. "The summer/winter cost of electricity was much more stable a few years ago when the cities were making the switch from summer/winter rates," explained utilities director Charles Jenkins. "That's changed now, and most of those cities are switching back like we are," he stated. The winter rates went into effect this month and will be reflected on bills customers receive Feb. 1. The winter rates will be in force November through April, and the summer rates will be in effect May through October. The council also approved a reduced minimum for senior customers from $10 to $5, along with a reduced senior rate for security lights from $8 to $5. To qualify the meter must be in the senior customer's name. Seniors will need to visit City Hall and verify proof of age with proper identification. The net increase in revenue the city projects from the rate changes is approximately $2,416 or an increase of .03 percent. Jenkins noted that the changes were made following recommendations from MEAG who also conducted the study producing the rates and revenue figures. Residential rates Residential customers have been paying 8.2 cents per kwh across the board since the city's last rate increase Jan. 2003. The Feb. 1 bills will reflect a $10 base, 8.5 cents per kwh for the first 1,000 kwh, and 7.5 cents per kwh for additional kwh used. The summer rates will include the $10 base, 8.5 cents per kwh for the first 1,000 kwh, and 10.5 cents per kwh for additional kwh used. The new summer/winter residential rates will produce an estimated 1.96 percent increase - $59,398 - in revenue. Commercial (non-demand) rates The new winter rates for nondemand commercial customers includes a $15 base, 10.4 per kwh for the first 3,000 kwh and 9.6 cents per kwh for usage over 3,000 kwh. The summer rate will include the $12.50 base, 12.4 cents per kwh for the first 3,000 and 11.6 cents per kwh for usage over 3,000 kwh. The new non-demand rates reflect a 3.16 percent increase, producing $14,769 in increased revenue. Small Commercial Demand rates The new rates for small demand commercial customers are level yearround. They include a $35 base, 11 cents per kwh for the first 20,000 kwh, and 7.5 cents per kwh for usage over 20,000 kwh. Small commercial customers whose electrical demands reach an "hourly use demand" in excess of 200 hours are subject to demand charges of 4.5 cents per kwh for that usage and 4 cents per kwh for demand over 400 kwh HUD. The new rate structure for these electrical customers will produce a projected $5,325 in revenue, an increase of .5 percent. Large Commercial Demand rates The new rate structure for large commercial demand customers is the same as that for the small demand customers. However, according to the MEAG's rate study, revenue from this block of customers will decrease by an estimated $59,946, a decrease of 4.72 percent. The cities two customers on industrial rates, Universal Blanchers and Birdsong Peanuts, will both face a small projected increase totaling $4,706 annually or .6 percent. The city's only seasonal agricultural rate customer, Early Gin will see an estimated decrease of 11.32 percent in their annual electrical cost. Security lights Monthly rates for security lights will increase as follows:
175 watt mercury: increase from $7 to $8 and decrease from $7 to $5 for senior customers. 400 watt metal halide: increase from $14 to $18. 1,000 watt metal halide: decrease from $38 to $36.
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