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Rising power supply costs, continuing needs for capital improvements and rising operation and maintenance costs were cited in an electric rate plan review presented Monday by Don Grunenmeyer, president of Sawvel and Associates. The firm has been performing similar work for city utility operations for many years. The last study, completed in 2008, resulted in a series of electric rate hikes that were completed in 2012.
"This is a healthy thing to do because costs do change over time," Grunenmeyer said.
Since the 2008 study, the city has been moving away from buying 81 percent of its power on the open market to 38 percent in 2013 and plans to reach 13 percent in 2016.
Director of Utilities Brian O'Connell told the Board of Public Utilities that moving away from the open market has been viewed as a way to control price spikes.