At the April 22, 2013 Board of Public Works regular meeting new utility rate structures were adopted for electric and water services provided by Macon Municipal Utilities. The rate structures will be effective with May 1, 2013 billing statements.
MMU retained the services of Toth & Associates, Inc. from Springfield, Missouri to perform electric and water cost of service studies. Mr. Lou Toth, P.E., and Mr. Craig Woycheese, CPA, presented rate increase recommendations to the Board of Public Works based on their analysis of MMU's consumption and expense information.
Regarding electricity, adjustments were necessary to cover increased wholesale power cost expenses of 18.4% when comparing 2013 forecasted figures to 2012 actual expenses. The increases in cost are due to environmental and infrastructure costs relating to the generation of electricity, increased transmission fees, and MMU's loss of capacity credits for diesel generation equipment due to Environmental Protection Agency regulations. Based on the new determinants for how usage is being billed, MMU will also now be consistent with other cities in charging demand to larger users. MMU's threshold is 100 kW. Demand will be billed on a rolling 12 months. If demand exceeds the baseline reading a new 12 month cycle will begin.
Due to the significant impact, MMU is phasing in the rate increases with a 13% average increase in electricity fees with May 2013 billing statements and 7% in January 2014. For the initial phase, a residential customer that uses 1,000 kWh of electricity will notice an $11.22 increase in their monthly electricity charges. Commercial customers will be the most significantly affected with the rate increases based on the change in how wholesale costs are being billed to MMU. Increased wholesale costs are being felt by many communities across the nation. MMU's rates were last adjusted May 2009.
For water, the adjustments to the rates are to cover general operating expenses and current infrastructure needs. At the meeting rates were increased 9.2%. The overall impact of these increases will be about $1.50 per month for residential customers using 5,000 gallons of water. Commercial and industrial customers inside the city limits using 50,000 gallons of water each month will realize about an $11.00 increase per month in charges as a result of the adjustments. Water for resale customers also received rate adjustments per allowances in their contracts. Water rates were last adjusted February 2012.
A rate sheet can be obtained at www.maconutilities.com or at 106 W. Bourke Street, Macon, MO 63552.