New Ordinances to increase basic electric rates and replace the controversial component of the "fuel adj." charge were introduced at the last Council meeting. Rates will rise 1.5 cents/KWH, (about .6% overall) according to Superintendent Gillespie-- in accordance with the 2010 budget approved last Fall by the Mayor/Council. Gillespie went on to say the "revenue component" has been taken out; and future fuel adjustments by the supplier (AMEA) will be passed on to customers as "just a straight fuel adj." If the supplier raises retail/wholesale energy costs, however, there may have to be another rate increase of the same amount (after approval by the Council).
FAC Committee Chairman Zunk: "If the AMEA raises (wholesale) rates, that will now be a rate change, not a fuel adjustment."
Councilman Kingrea was given assurances by staff that the changes are fair to the city and its citizens (electric customers).
Councilman Stankoski: "If it costs us more to buy it, then we'll have to pass it on."
Council President Mixon said he desired this--and all subsequent--utility rate changes/increases to "go through" the FAC (so it can make recommendations) before final adoption by the Council.
Gillespie: "The revenue component of the "fuel adj." is (now) history. It (fuel adj.) will be just whatever the AMEA charges us from now on."
Ordinances to increase the tap fees for new sewer connections in some places outside the city limits (Colonial Acres, Fish River, CR 1, Scenic 98, et al) were also introduced.
The proposed Ordinance Amendments will not become law until after a final vote-- to be taken at the next Council meeting.
**Note: Fuel adjustments are used to compensate for short term fluctuations in the cost of the natural gas/coal necessary to generate the electricity at power plants.
New Ordinances to increase basic electric rates and replace the controversial component of the "fuel adj." charge were introduced at the last Council meeting. Rates will rise 1.5 cents/KWH, (about .6% overall) according to Superintendent Gillespie-- in accordance with the 2010 budget approved last Fall by the Mayor/Council. Gillespie went on to say the "revenue component" has been taken out; and future fuel adjustments by the supplier (AMEA) will be passed on to customers as "just a straight fuel adj." If the supplier raises retail/wholesale energy costs, however, there may have to be another rate increase of the same amount (after approval by the Council).
FAC Committee Chairman Zunk: "If the AMEA raises (wholesale) rates, that will now be a rate change, not a fuel adjustment."
Councilman Kingrea was given assurances by staff that the changes are fair to the city and its citizens (electric customers).
Councilman Stankoski: "If it costs us more to buy it, then we'll have to pass it on."
Council President Mixon said he desired this--and all subsequent--utility rate changes/increases to "go through" the FAC (so it can make recommendations) before final adoption by the Council.
Gillespie: "The revenue component of the "fuel adj." is (now) history. It (fuel adj.) will be just whatever the AMEA charges us from now on."
Ordinances to increase the tap fees for new sewer connections in some places outside the city limits (Colonial Acres, Fish River, CR 1, Scenic 98, et al) were also introduced.
The proposed Ordinance Amendments will not become law until after a final vote-- to be taken at the next Council meeting.
**Note: Fuel adjustments are used to compensate for short term fluctuations in the cost of the natural gas/coal necessary to generate the electricity at power plants.