First electric rate hike in years, headed to Beatrice City Council for action

BEATRICE – Facing increasing costs of electricity in the future, the Beatrice Board of Public Works is recommending the city enact its first electric rate increase in about ten years.
The BPW is recommending the mayor and city council approve an increase that would add about $5.25 a month to the average residential electric bill. General Manager Tobias Tempelmeyer says results of a rate study to be presented to the city council next week, point toward the need to prepare for higher costs of electricity beginning in 2031.
"A couple of key findings that he found in his rate study was our customer charge for all our rate classes was too low...except for general service demand. Our cost on the all-electric rates was too low...and our winter rates were too low compared to our summer rates. The big change in the rate ordinance is the infrastructure fee we our proposing...starting in October for all the rate classes. Residential will be three dollars, general service will be four dollars and for general service demand....ten dollars per month."
Under the proposal heading to the council, the electric rate increase would cover each year of the new two-year budget cycle. The board forwarded the BPW budget plan to the council, on Wednesday.
Officials are considering new electric power generation but have not decided what form that could take.
Part of the new electric rate structure is the three-dollar infrastructure fee, which Mayor Bob Morgan sees as important for the future.
"If we don't continue to make sure we have an infrastructure fee for all of our utilities, some day we could be in a bad spot. This is a designation that says infrastructure is important, and we're going to keep it up."
The BPW Wednesday also recommended a two-dollar per month increase in the water infrastructure fee and a similar increase in the sewer infrastructure fee….but only for the first year of the new budget. Tempelmeyer said the cumulative effect of the rate increases for the coming year would be about $9.25 cents more per month, for the average utility ratepayer.
Wednesday, the public works board also adjusted the fee for a new water tap, from the current $1,975, to $2,400…due to increasing costs of materials.
Final approval of the City and Board of Public Works budgets, along with the rate ordinances, is set for Monday night.