ANDERSON – An electric rate increase for residential customers of Anderson Municipal Light & Power will be significantly less than what city officials projected in 2013.
Light & Power received permission to issue $1.5 million bonds and to adjust rates following a decision by the Indiana Utility Regulatory Commission.
Tony Pochard, superintendent of Light & Power, said the residential electric customers using 1,000 kilowatt-hours will see their statement go up by an estimated $1.74 or 1.7 percent. Residential customers using 1,214 kilowatt-hours will see no change and those using 1,500 kilowatt-hours can anticipate a monthly increase of $2.33 or 1.6 percent increase.
Originally residential customers were expected to see a rate increase of between $5 and $7 monthly or a 7.8 percent hike.
Pochard said the IURC requested a cost-of-service study to determine the actual costs for each of the 11 classes of customers served by Anderson Light & Power, which caused some rates to increase while others decreased.
The IURC issued the decision last week after considering the city’s request for a rate adjustment and permission to issue the bonds filed last year.
The last time a rate increase was granted to Anderson Light & Power was in 2008.
Pete Heuer, chairman of the Anderson Board of Public Works, said Monday that Light & Power, through the efforts of former superintendent Tom Donoho and the board, were able to reduce expenditures by $205,000.
The municipally-owned utility requested IURC approval in 2013 to increase the amount of revenues generated by 2.7 percent.
Light & Power generated $76,537,894 in revenue in 2012 and the IURC determined the needed revenue was $76,514,148.
Pochard said the IURC approved new rates for industrial power and industrial power transmission service customers.
He said the city supplies industrial power transmission service directly to the customers at 34,500 kilo volts and doesn’t require the use of a transformer. This saves the city money.