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Macon Chronicle-Herald - Macon, MO
  • Adjusting rate structures

  • Macon Municipal Utilities has adjusted their rate structures. Read more here.
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  • At the December 16, Board of Public Works meeting, utility rate structures were adopted for water services provided by Macon Municipal Utilities. The rate structures will be effective with February 1, 2014 customer billing statements
    MMU retained the services of Toth & Associates, Inc. from Springfield to perform electric and water cost of service studies early in 2013. Phased electric service rate structures were previously approved at the April 22, 2013 Board of Public Works meeting. The first phase representing a 13 percent overall increase was implemented with May 2013 statements. A seven percent overall increase will be implemented for January 2014 statements. Toth was contacted again regarding the approach to revise water rates equitably due to less water consumption than predicted, especially amongst the large customers.
    For water, the adjustments to the rates are to spread expenses across the entire customer base due to less consumption. At the December 16, 2013 meeting overall rates were increased 5.27 percent. The impact of these increases will be about $.56 per month for residential customers using 5,000 gallons of water. Commercial and industrial customers using 50,000 gallons of water each month will realize about a $5.87 increase 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 for May 2013 statements.
    Regarding electricity, adjustments were necessary to cover increased wholesale power cost expenses of 18.4 percent when comparing 2013 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 credit for diesel generation equipment due to Environmental Protection Agency regulations. Based on the new determinants for how usage is being billed, MMU is also now consistent with other cities in charging demand to larger users. MMU’s threshold is 100 kW. Demand is billed on a rolling 12 months. If demand exceeds the baseline reading a new 12-month cycle begins.
    For phase two electric rate increases, a residential customer that uses 1,000 kWh of electricity will notice a $9.07 increase in their monthly electricity charges. Commercial customers have been the most significantly affected with the rate increased based on their usage level and the change in how wholesale costs are being billed to MMU. Increased wholesale costs are being felt by many communities across the nation. Prior to in 2013, MMU’s rates were last adjusted May 2009.
    A rate sheet can be obtained at www.maconutilities.com or at 106 W. Bourke Street, Macon, MO.
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