The Duncan Banner

October 22, 2013

City Council to discuss electric rate increase

Derrick Miller
The Duncan Banner

DUNCAN — During tonight’s Duncan City Council meeting, council members will discuss approving a resolution that would create a rate increase for Duncan Power customers.

If the resolution is adopted, customers can expect to spend $3.36 more for every 1,000 kilowatt hours they use. The resolution would take the fuel cost adjustment from $19.40 to $22.76 for every 1,000 kilowatt hours used.

Duncan Power Director David Yeager said tonight’s meeting will be more for informational purposes to provide council members with a better understanding. Yeager said council members probably won’t approve an increase until the Nov. 12 regular meeting.

“We’re trying to do two things at once,” Yeager said. “We need to recover some costs that are not strictly energy related. Because it’s so complicated, tonight will be discussion. We had about 2 1/2 percent increase overall this year that was again unbudgeted.”

The City of Duncan is looking for a rate increase that will offset about $315,210. Yeager said that rate increase will not cover all of the 2 1/2 percent increase charged to the city. He said the city can no longer cover the 2 1/2 percent increase, and it will be up to the customers to levy that increase through November and December.

“We know it’s going to be hard for some people,” Yeager said. “That’s why were trying to taper into this thing. We’ll give them time to adjust. They can either adjust their usage or adjust their budget.”

Yeager said OMPA is also looking at a rate increase, which would start in January. At that point, it could mean another rate increase for Duncan Power and its customers. He said OMPA is projecting an overall price increase of 3.95 percent on January kilowatt hours.

Yeager expects increase between 1.9 to 2 percent to be passed onto to consumers starting in January. This total would be based on the Consumer Price Index.

The Duncan City Council meets at 5:15 p.m. today in the Duncan City Council Chambers