Utility commission approves rate increase
Over the last 20 years, citizens have seen increases in nearly every consumer good. OMU, however, has been able to maintain its base rates due to the use of reserves, development of income sources outside of rates and other financial and cost-saving measures. Careful consideration of and development of budgets, the forgoing and postponing of projects, and other measures have also aided in maintaining rates for our customers. OMU, as a result, has not increased its rates since 1992.
Despite these efforts, a recent rate study and review revealed that OMU is significantly under-recovering the cost of providing electric services to all of our customer classes. As a result, OMU’s Utility Commission considered and approved a two-phase rate increase and realignment in its regular meeting on April 16.
As part of this proposal, which will be considered and voted upon by the Owensboro City Commission, there would be a two-step increase to lessen the impact to our customers. The first phase would be effective June 1, 2009; the second would be effective January 1, 2010.
This would mean an overall billing increase of 25 to 30 percent dependent upon the customer class. OMU’s residential rate per kWh, for instance, would increase from 8.3 cents to approximately 10.5 by 2010.
For residential customers this would be an approximate increase of 27 percent, or a total $20.52 per month by 2010. Currently, the average residential customer, using 922 kWh per month, pays $76.22.
In addition, changes in the rate structure were also considered and approved by the utility commission which affect General Service Primary and General Service Secondary metered customers (commercial and industrial classes) including a clearer definition between the two classes, the institution of a power factor charge (effective June 2010), and demand and usage charges and distinctions. To learn more about the proposed structure changes, please contact the Customer Service Center at 926-3200 ext. 216.
We understand that increasing rates impacts our customers and that our customers are already being affected by the changing economy. However, we feel that in order to secure the financial health of OMU and our community, we have to assure we are recovering the cost of serving our customers.
For more information, please contact our Customer Service Center at 926-3200.
Despite these efforts, a recent rate study and review revealed that OMU is significantly under-recovering the cost of providing electric services to all of our customer classes. As a result, OMU’s Utility Commission considered and approved a two-phase rate increase and realignment in its regular meeting on April 16.
As part of this proposal, which will be considered and voted upon by the Owensboro City Commission, there would be a two-step increase to lessen the impact to our customers. The first phase would be effective June 1, 2009; the second would be effective January 1, 2010.
This would mean an overall billing increase of 25 to 30 percent dependent upon the customer class. OMU’s residential rate per kWh, for instance, would increase from 8.3 cents to approximately 10.5 by 2010.
For residential customers this would be an approximate increase of 27 percent, or a total $20.52 per month by 2010. Currently, the average residential customer, using 922 kWh per month, pays $76.22.
In addition, changes in the rate structure were also considered and approved by the utility commission which affect General Service Primary and General Service Secondary metered customers (commercial and industrial classes) including a clearer definition between the two classes, the institution of a power factor charge (effective June 2010), and demand and usage charges and distinctions. To learn more about the proposed structure changes, please contact the Customer Service Center at 926-3200 ext. 216.
We understand that increasing rates impacts our customers and that our customers are already being affected by the changing economy. However, we feel that in order to secure the financial health of OMU and our community, we have to assure we are recovering the cost of serving our customers.
For more information, please contact our Customer Service Center at 926-3200.
Published on 4/17/2009 01:40:00 PM
<< Home