Westar Energy has sent a notice to the city of Eudora that it has applied for a 30% rate increase in what it charges the city for electricity. This rate increase will cost the City of Eudora is approximately $630,000. The City, between budgeting for an expected rate increase and with doing “conservative budgeting techniques”, narrowed down the rate increase to $410,000. This increase would be passed on to the residents and business that are served by the City of Eudora.
While the City plans to appeal this large increase, officials don’t believe the appeal will stand.
“We are working with Westar to make sure we get a fair shake.” John Harrenstein, Eudora City Administrator said. City officials are looking at all options available, one of which includes looking for a secondary provider for power above what Westar is contracted for into 2013.
What does this all mean to the average citizen? It likely means get ready to pay more. The city is looking at multiple changes to energy costs to absorb this increase.
Residential and the smaller commercial customers are looking at a 4% rate increase, while higher end commercial and industrial customers are looking at a 5% rate increase. For those that reside outside the city limits and receive their power from the city, the rates would increase even more, to approximately 6%.
Another thing the city wants to do is charge the same amount for usage year round. Currently, we pay less in the winter for our power than we do in the summer. This lesser charge would be eliminated.
Currently, any fuel adjustment charges are passed on to us. Under the new plan, we would continue that pass through charge and it would be a minimum of .0058 cents. On average, the fuel adjustment minimum rate is below this amount, six months out of the year. Through the first eight months of 2010, it has been significantly less than the minimum only once.
Finally, the city wants to add a monthly base rate. For residential and single phase commercial users, the base rate would be $7.90. Three Phase Commercial users would see a base rate of $12.50 while Industrial operations would see a base rate of $30.00. Outside city limit users would receive a base rate of $15.80.
Based on a 1500kw monthly usage, residents would see an increase of approximately $13.60 in their monthly bill. Harrenstein did state to the City Council meeting, that most normal households use in the area of 800kw to a 1000kw each month.