Commission Considers Lowering Electric Rates
Next week, the Pierre City Commission will decide if it will lower City electric rates. The proposal was made during tonight’s City Commission Meeting following a utility rate analysis provided by Missouri River Energy Services.
The analysis recommended lowering the electric utility rate for all customers, residential, commercial, and rural, by an average of 3%. Depending on usage, the recommended change equates to a decrease of between $1 and $6 a month for an average residential customer.
“We have a basic supply and demand situation working to our benefit,” said Brad Palmer, City Utility Director. “Because there is more power available to us through our generation network, we have a higher supply which makes it more affordable.”
The City Commission also heard a rate analysis for the City’s Water and Wastewater Utilities.
Water Utility Recommendation
The analysis recommended an increase of 8% annually from 2019 to 2023. This recommendation is in light of the water treatment facility the public approved during the June 2018 primary election. If the Commission accepts the 8% recommendation for the next five years, the average user will pay an additional dollar a day for treated water.
Wastewater Utility Recommendation
To cover increased operational costs and major capital improvements, the analysis recommended that the city raise wastewater utility rates an average of 5%. If the commission accepts that recommendation, the average residential user would see an increase of about $1.60 a month.
If all three utility recommendations are accepted by the Commission, the average residential utility customer will see an increase of $0.83 a month. The Commission will take final action on the rate recommendations at the Dec. 4 Commission Meeting.
Pierre Public Utilities provides electrical services to more than 7,300 customers, maintains more than 100 miles of water main, and, annually, processes more than 580 million gallons of wastewater.