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August 26, 2010
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Board approves electric rate increases for 2011 - 2013
The Board of Public Utilities today approved a three-year package that, if approved by City Council, would increase base electric rates beginning in October of 2011. The three-year package consists of the following:
- October 2011: 3 percent. Estimated residential increase of $2.34 per month.
- October 2012: 2 percent. Estimated residential increase of $1.75 per month.
- October 2013: 2 percent. Estimated residential increase of $1.75 per month.
Escalating costs associated with emission and security requirements for power generating systems, along with other costs of producing electricity, have contributed to the need for additional revenue. CU, acting under the guidance of City Council, has asked for a series of smaller increases rather than one larger increase. The electric rate package now moves to Springfield City Council for first reading on Tuesday, September 7.
The Board also approved the FY 2011 Operating Plan and Budget. (City Utilities Fiscal Year is October 1 through September 30.) The $520.7 million dollar budget reflects continued efforts from all areas of the utility to control costs while providing reliable service from all areas. During FY 2009 actual expenditures were $627.8 million, with reprojections for FY 2010 to be $617.1 million due to additional cost containment measures.
Additionally, the Board was advised of the following:
- Construction of SW2 is nearing the completion. Beginning next week, the process of cleaning the boiler and piping will begin. The process, known as a “steam blow,” will take place on a daily basis for several weeks. Due to the volume and display of steam during this task, CU will be working closely with local media outlets and the Office of Emergency Management to keep residents informed.
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