Utility Service Board approves changes to electric rates
In a two-hour utility service board meeting on Tuesday, Sept. 25, consultants outlined proposed changes to LMU’s electric rates.
A cost of service study recommended that LMU decrease its electric revenue by about 4 million dollars, or about 10.67 percent.
The main reason for the decrease is that LMU’s cost to purchase the electricity it sells to its customers will decrease in January when the contract with NextEra Energy takes effect. .
Consultants then determined how to distribute that among LMU’s various classes of customers.
What that would look like for LMU’s residential customers would range from no increase for the lowest users to a savings of $3.83 per month for the largest residential users.
According to the consultants, average commercial users would see a savings of $9.39 per month while the average savings for large commercial users would be $35.58 per month.
Average to large power users would see savings of $1,400 to $4,488 per month.
Rates for metered outside lighting would increase by about 10 percent.
For customers who pay only a flat rate and use minimal electricity, the monthly cost would rise from $11.80 to $21.97.
The proposal also includes an economic development incentive for new business.
Attorney Jim Brugh brought up some concerns regarding the amount of the payment in lieu of taxes that LMU provides to the city.
The Utility Service Board unanimously approved the proposed rates, but they are still subject to approval by the Logansport City Council, which has a public utility committee meeting scheduled for 6 p.m. October 10 to discuss electric rates.
The items are expected to be on the agenda for a vote at the council’s November and December meetings.
If approved, LMU says they’d take effect in January and customers would see them reflected on bills that they receive in February.