Jackson aldermen approve electric increase

The Jackson Board of Aldermen voted to increase the city's electric rates on Monday night despite requests by several residents -- including Cape Girardeau County Auditor David Ludwig -- to table the issue.

Last month, consultants with the Kansas City engineering firm Burns and McDonnell recommended the city implement a series of three 12 percent electric rate increases to help offset increasing wholesale electricity costs. The aldermen unanimously approved the rate increases and voted to continue the 10 percent discount for residents who pay by the 10th of the month. The board decided to discontinue the discount for businesses.

Ludwig, a former alderman, asked the board to reconsider the increase. Ludwig, who is the county auditor, said the increase means the county will need to budget an additional $100,000 next year for its utility bill.

Alderwoman Barbara Lohr acknowledged that the county will see increased electric costs at the jail, administration building and courthouse in Jackson, but reminded Ludwig that the county will receive additional revenue at the beginning of the year.

"With the new sales tax that was just passed we will all be paying the county more money," Lohr said. "Our contract with Ameren will be up at the end of the year, so there's really no time to table this issue," she said.

Jackson will join the Missouri Public Energy Pool when its contract with Ameren Energy Marketing expires at the end of the year. MoPEP supplies electricity to 30 cities across the state.

Ludwig said Jackson should re-evaluate the MoPEP contract, which states a city must give MoPEP a five-year notice before breaking the contract. "That's a long-term commitment you're putting the city in," he said.

The city staff and board of aldermen studied various contracts before approving the MoPEP contract, city administrator Jim Roach said. "It's a tough situation in the power business, but this will ultimately be the best deal for the city," he said.

Lohr said the city would have taken a five-year contract with Ameren at the rate the utility is charging now. "But their contract was going to be even more expensive," Lohr said.

Roach said the electric rate increase would have been even higher if the discount program for businesses continued. Instead of three 12 percent increases, the city would need to implement three 13 percent rate boosts, he said.

Businesses can recoup higher costs of electricity, but residents can't, Roach said.

Lester Maevers, who owns several businesses in Jackson, said he currently pays about $3,000 per month in utility bills. "It's going to affect us a lot, and it will really affect the price of our product," he said.

Mayor Paul Sander said he typically won't allow public comments on issues after a public hearing is held. A public hearing for electric rate increases was held on Aug. 22. "I understand the public has a right to voice their suggestions and concerns but that's what a public hearing is for," he said.

The first of three 12 percent rate increases will take effect on the Oct. 1 utility bill.

jfreeze@semissourian.com

335-6611, extension 246