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City to raise electricity, water rates
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By CHUCK CLEMENT, Staff Reoprter
| 11/05/2009 |
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Madison residents will see higher costs for municipal electricity and water services on their December utility bills after the city commission passes new ordinances later this month to increase those utility charges. City commissioners approved the first reading of two ordinances that will increase electricity and water charges. Commissioner Dick Ericsson, who handles utility-related business for the commissioners, told the group that rates would increase from $70.96 to $77.76 per month for purchasing 800 kilowatt-hours of municipal electricity.
Commissioner Karen Lembcke said city officials know that current economic conditions are tough for Madison residents.
"I really wish that there was some way that we didn't have to raise these rates," Lembcke said.
She noted that the commissioners had cut many items from the city's 2010 budget, but she said they couldn't delay indefinitely the purchase of all equipment or placing money into reserve funds.
Ericsson said that the water rate increase will boost the monthly charges for 5,000 gallons of water used by a typical household from $21.09 to $21.97.
Heath VonEye, municipal public works director, noted that a survey conducted before the last rate hike indicated that Madison's water charges were in the middle of a range of charges for surrounding communities.
Ericsson pointed out that the Western Area Power Administration and Heartland Consumers Power District raised their wholesale electricity rates by 13 percent and 6 percent, respectively, during the last year. WAPA and HCPD each provide about 50 percent of the total electricity distributed by the Madison utility.
"The increase is basically our cost of power," Ericsson said.
Mayor Gene Hexom said WAPA was left with little choice but to raise its rates. The agency experienced a reduction of power generation during the last decade that required WAPA to purchase electricity from the open market. Due to those purchases, WAPA accumulated about $1 billion in debt that the rate increase will help pay off.
The commissioners will hear the second reading of the ordinances on Nov. 16 and consider their passage into law.
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©Madison Daily Leader 2009
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