Pella Chronicle

Local News

January 5, 2013

Council takes steps to adjust electrical rates in Pella

Pella — During the December 18 Pella City Council meeting, the first reading of an ordinance amending electrical rates was approved by council.

On October. 23, 2012, the City Council reviewed the Electrical Cost of Service Study performed by Missouri River Energy Services (MRES). The Electrical Cost of Service Study analyzed the cost of serving each of the utility customer classes and recommended an electrical rate structure which was based on the cost to serve our customers. On December 4, 2012, the City Council reviewed a new energy cost adjustment (ECA) formula which accounts for fluctuations in the costs of the City's power supply, fuel for the diesel generating plant, and transmission expenses. After discussion, staff was directed to proceed with amending the electrical rates.

Comparison of Proposed Electrical Rates to Current Electrical Rates

Overall, there will be no increase in revenues received by the City as the proposed electric rates are estimated to provide the same amount of revenue as our existing rates. However, based on the Cost of Service Study, there will be increases and decreases in the respective classes to adjust to the cost to service each class.

Energy Cost Adjustment (ECA)

The ECA is intended, to account for fluctuations in the cost of the City's power supply, fuel for the City's diesel generating plant, and transmission expenses. It is important to note, staff believes the ECA will be more stable in the future and as a result we are proposing an ECA formula which would require Council approval to increase the ECA above the baseline energy cost of 6.8 cents per kWH as identified in the Cost of Service Study. As a result, any changes desired by Council would be made in November for the upcoming calendar year and would be based on projected energy costs. Listed below is the proposed ECA formula:

A+B/C-$0.068= ECA (Factor to apply to monthly bills.)

A = Annual projected power and transmission costs for the next calendar year.

B = Actual cost of fuel for local generation in excess of $45,000.00 in the previous year.

C = Annual projected kWh. $0.068 = Base Power Cost (Already included in the rate structures).

Proposed Electric Rates

The new electrical rates include a seasonal rate structure in which the rates will be higher in the summer months of June thru August and lower in the spring, fall, and winter months. The reason for this approach is the City's purchase power costs thru Missouri River Energy Services are higher in the summer months which is driven by demands for energy. In addition, power supply costs account for approximately 80% of the electric utility's operating costs. If Council adopts the proposed rates, staff will be providing our customers with information of the new seasonal rates along with strategies to reduce the community's peak electrical demands during the summer months.

If council were to adopt the ordinance for the new electric rates, they would be in effect for utility bills due in April 2013 for March 2013 usage.

The second reading of this proposed amendment was approved during the Jan. 3 regular council meeting (after press time for The Chronicle this week).

1
Text Only
Local News
  • Seusical 261.JPG Summer Fun for Families: Seussical the Musical

    July 25, 2014 1 Photo

  • 93.jpg Pella Community Calendar of Events

    June 25 - Aug. 2

    July 25, 2014 1 Photo

  • Republicans.jpg Republicans to hold events
    The Marion County Republicans are holding events in Knoxville and Pella Saturday, July 26. 

    July 24, 2014 1 Photo

  • Fawn.jpg Marion County photo contest winners

    Winners of the 2014 Marion County Photo Contest were announced at the Marion County Fair. 

    July 24, 2014 1 Photo

  • Military Retiree Appreciation Day Aug. 28 near Pella A military Retiree Appreciation Day will be held Thursday, Aug. 28 at the Prairie Meadows Race Track and Casino in Altoona, Iowa. Retirees from all branches of the armed forces and their family members are eligible to attend. The event will run from

    July 22, 2014

  • Logo for story Nurses flourish at PRHC with Pathway to Excellence Pella Regional Health Center has again achieved Pathway to Excellence® designation from the American Nurses Credentialing Center. The Pathway to Excellence recognition is earned by health care organizations nationwide that create work environments wh

    July 22, 2014 1 Photo

  • Lake Red Rock Programs for July 25-30 There’s always something happening at Lake Red Rock! Check out these upcoming programs: July 25 - “Thief in the Night” - 7:00 p.m. - Howell Station CampgroundProblem: A critter of the night consistently raises havoc with backyard bird feeders. Action

    July 22, 2014

  • USDA's NRCS wetland compliance listening session set for July 28 USDA’s Natural Resources Conservation Service (NRCS) will host a listening session on Monday, July 28, to seek comments on proposed changes to wetland compliance provisions. The session will be at Ankeny Fire Station #1, 120 NW Ash Drive, from 1 p.m.

    July 22, 2014

  • Pella Runway Rehabilitation Project continues along The Pella City Council, during last week’s meeting, approved a resolution, following a public hearing on the matter, for plans, specifications, form of contract, receiving bids, making award of contract to TK Concrete, and issuing notice to proceed a

    July 22, 2014

  • Photo contest winners named Winners of the 2014 Marion County Photo Contest were announced last week at the Marion County Fair. The annual Contest is sponsored by Marion County Extension & Outreach and the Marion County Development commission (MCDC). This year nearly 300 photos

    July 22, 2014

Features
Facebook
AP Video
Traditional African Dishes Teach Healthy Eating The Carbon Trap: US Exports Global Warming 13 Struck by Lightning on Calif. Beach Baseball Hall of Famers Inducted Israel, Hamas Trade Fire Despite Truce in Gaza Italy's Nibali Set to Win First Tour De France Raw: Shipwrecked Concordia Completes Last Voyage Raw: Sea Turtle Hatchlings Emerge From Nest Raw: Massive Dust Storm Covers Phoenix 12-hour Cease-fire in Gaza Fighting Begins Raw: Bolivian Dancers Attempt to Break Record Raw: Israel, Palestine Supporters Rally in US Raw: Air Algerie Flight 5017 Wreckage Virginia Governor Tours Tornado Aftermath Judge Faces Heat Over Offer to Help Migrant Kids Kangaroo Goes Missing in Oklahoma More M17 Bodies Return, Sanctions on Russia Grow Raw: Deadly Tornado Hits Virginia Campground Ohio State Marching Band Chief Fired After Probe Raw: Big Rig Stuck in Illinois Swamp
Hyperlocal Search
Premier Guide
Find a business

Walking Fingers
Maps, Menus, Store hours, Coupons, and more...
Premier Guide
Obituaries