The Madison City Commission acknowledged a letter Monday from the U.S. Department of Energy informing the city that the wholesale rates for electricity from the Missouri River dams had increased by about 25 percent at the start of February. In preparation for the wholesale rate increase, the commissioners increased municipal electric rates in November. Jeff Heinemeyer, city finance officer, told the commissioners that the city's January utility bills for its electric customers reflect the rate increase.
"Our rates reflect this increase -- current rates," Heinemeyer said.
Earlier last fall, city officials estimated that the average monthly electric utility charge to municipal customers would increase by about $4.90. The Western Area Power Administration has increased its power service rate to $6.80 per kilowatt-month for capacity and 16.71 mils per kilowatt-hour for energy.
Commissioner Dick Ericsson asked Heinemeyer about the percentage of electricity in total that Madison receives from WAPA. Heinemeyer said that WAPA currently supplied 50 percent of Madison's needs.
According to Heinemeyer, WAPA had supplied as much as 80 percent in the past, but Madison's electricity needs had grown while its allocation had remained the same.
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