City electric rates may rise in January

Posted 12/15/16

On Monday, the Powell City Council will have a final vote on City Ordinance No. 7, which calls for an 8 percent increase in electric rates that would begin with January 2017’s billing cycle. Councilmen have approved the proposal on two earlier …

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City electric rates may rise in January

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Council considers hike to keep up with increased costs

If your house looks like it was decorated by Clark Griswold this holiday season, you may want to start pinching your pennies to pay for that extra juice.

On Monday, the Powell City Council will have a final vote on City Ordinance No. 7, which calls for an 8 percent increase in electric rates that would begin with January 2017’s billing cycle. Councilmen have approved the proposal on two earlier readings and — barring any unforeseen issues — they’re expected to vote to approve the rate increase at next week’s third reading.

City Administrator Zane Logan said that, due to a number of factors at the Wyoming Municipal Power Agency (WMPA) — the agency that provides electricity for Powell, Cody and six other communities — an increase has become necessary.

“Because of operation costs, the power we get from the surplus market is nothing like it was estimated years ago,” Logan said. “With reduced energy (production) in our area, usage is way down. We have set costs, like everybody does, but we’re looking at some major updates at the federal EPA level for the Laramie River Station.”

President-elect Donald Trump has pledged to repeal some of the EPA’s clean energy regulations on power plants like the coal-fired Laramie River Station, but Logan said this week that, “as far as we know, they’re still valid.”

“That’s a massive project that has to be done to update the power plants down there. All of that factors in to the increase,” he said.

Mild weather is also a factor, according to Logan; the chilly temperatures of the last couple of weeks notwithstanding, homes and businesses are simply using less electricity.

“The last few years, we haven’t really had the extreme temperatures we’ve had in the past,” Logan said. “When summer is really hot and winter is really cold, that’s what drives the electric usage. Lower usage coupled with an energy surplus is what creates the issue.”

Logan estimates the 8 percent increase will represent about a $5 to $8 bump on what an average household pays a month for electricity. WMPA’s wholesale cost is increasing by 11 percent, and the city wanted to keep the rate increase as low as possible for consumers, resulting in the 8 percent increase they may see in January. It takes about an 8 percent increase in all three rate classes (residential, small commercial and large commercial) to generate the additional offset revenue to stay current.

“We’re just trying to make sure we have enough money to pay our bills,” Logan said. “That’s really what it boils down to.”

Residents with questions or concerns regarding the rate increase are invited to attend Monday’s City Council meeting, or contact Logan at 754-5106. The council meeting begins at 6 p.m. at City Hall.

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