The Jackson Board of Aldermen voted unanimously Monday to adjust the rates the city charges its electric customers an average of 11.5% ... downward.
The rate reduction, which will go into effect next month, was based on the recommendation of a utility consulting firm, which said the rate reduction is possible because the wholesale price of the electricity Jackson purchases is going down.
Jackson’s municipal electric company buys its power from Missouri Public Energy Pool (MOPEP), which has multiple power supply contracts allowing it to provide low-cost power to its members. That cost is expected to drop by about 10% starting in July.
According to a rate study conducted by 1898 & Co., a subsidiary of Burns & McDonnell Engineering of Kansas City, Missouri, the rate reduction takes into consideration a cash reserve surplus Jackson has accumulated for the purpose of maintaining and upgrading the city’s electrical distribution system.
“Jackson has identified a need to undertake several large transmission and distribution system capital projects over the next four years,” according to the 1898 & Co. rate study. “These capital project costs are included in the financial forecast and considered in the study.”
The rate review study went on to say Jackson could afford to pass its wholesale cost savings on to its residential and commercial customers while still maintaining an adequate reserve fund for system maintenance.
According to the rate schedule approved by the aldermen, residential customers will see an average rate reduction of 10%, small commercial customers will have a rate cut of 12.5%, while large commercial and industrial customers will see a 15% rate reduction.
Jackson’s municipal electric utility serves nearly 7,400 metered customers in an 11-square-mile service area. The city maintains 40 miles of transmission lines, 161 miles of overhead distribution lines and 69 miles of underground lines. It has more than 3,500 utility poles, nearly 2,000 streetlights and four substations.
In other actions during their business meeting Monday night, the aldermen:
The Board of Aldermen also approved a motion to accept the certified results of the June 2 municipal election and accepted the reappointments of aldermen and others to various committees and boards, including:
The board also voted to approve the appointment of Alderman Paul Sander to serve on the Uptown Jackson Revitalization Organization Board of Directors.
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