Pella Chronicle

Local News

January 12, 2013

Council approves second reading of electrical rate amendment

Pella — During the January 2 Pella City Council meeting, the second reading of an ordinance amending electrical rates was approved by council.

As reported in last week’s Pella Chronicle, 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.

A chart of the proposed impact the new rates will have on each of the City’s customer classes and the proposed electrical rates can be found in the January 3 edition of the Pella Chronicle - located on Page 2.

1
Text Only
Local News
  • 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

  • Bloom pic 1 Pella blooms for judges, now waits for results Last week (July 14-15), America in Bloom volunteer judges Bruce Riggs (New York) and Leslie Pittenger (Ohio) visited Pella. In preparation for the visit the City of Pella’s Community Services Department prepared a tour route for the judges that cover

    July 22, 2014 2 Photos

  • Patrick Edouard Supreme Court overturns Court of Appeals decision

    The Supreme Court of Iowa issued a ruling today which affirms a District Court ruling that sent a former Pella pastor to prison. 

    July 18, 2014 1 Photo

Features
Facebook
AP Video
Official: Air Algerie Flight 'probably Crashed' TSA Administrator on Politics and Flight Bans Raw: National Guard Helps Battle WA Wildfires Raw: Ukraine's Donetsk Residents Flee Senators Push to End Hamas Threat in Cease-Fire A Young Victim's Premonition, Hug Before MH17 U.N. School in Gaza Hit by Israeli Strike Raw: Deadly Storm Hits Virginia Campground Officials Warn of Avoidable Death in Hot Cars Death Penalty Expert: 'This is a Turning Point' House Committee at Odds Over Obama Lawsuit Raw: MH17 Victim's Bodies Arrive in Netherlands Raw: UN School Used As Shelter Hit by Tank Shell Raw: Gunmen Attack Iraqi Prison Convoy Plane Leaves Ukraine With More Crash Victims The Rock Brings Star Power to Premiere Raw: Families Travel to Taiwan Plane Crash Site Arizona Execution Takes Almost Two Hours Crash Kills Teen Pilot Seeking World Record
Hyperlocal Search
Premier Guide
Find a business

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