Jackson considers raising electric rates

The average Jackson household could see its monthly electric bill go up by $5.74 if the Jackson Board of Aldermen approves the recommendation of two engineering firms that performed a study on Jackson's electric rates.

Schultz Engineering Services and Fisher and Arnold outlined their study during a public hearing at Monday night's board meeting.

The firms, after studying the issue since last October, are recommending that residential consumers' fixed charges be increased by 50 cents per month. The increase would be the first in Jackson since 1991 and would go toward meter reading, billing and collection costs.

The rest of the increase is due to the large increase in wholesale power costs, which the city has no control over.

On May 31, Jackson's power contract ran out. The city had been getting its power from a variety of sources, including Jonesboro, Ark., AmerenUE and Sikeston, Mo.

As of Sunday, the city entered a three-year contract with AmerenUE, but the cost of the wholesale power increased by 9 percent.

Don Schuette, director of electric utilities, said the deal with AmerenUE had the smallest increase of all the options available. He said dealing with Ameren will save the city some money because it won't have to pay extra "wheeling" costs incurred by getting AmerenUE power through other municipalities.

Apart from residential rates, the engineers also made the following recommendations:

An 8.79 percent total increase for churches and schools.

An 8.56 percent total increase for small commercial properties.

An 8.86 percent total increase for large commercial properties.

A 10.02 percent total increase for industrial properties.

Stan Moore of Fisher and Arnold said the city has been operating with unusual efficiency when it comes to fixed charges. The firm's figures show that the city could charge $8.24 per month to cover costs like billing, postage and meter billing. But for the last 12-plus years, Jackson has charged $3 and made up the difference in its rates for usage. Moore said a 50-cent increase in fixed rates is "very reasonable."

Even with the recommended increases, Jackson would provide cheaper electricity per kilowatt hour than Ameren, Black River or Citizens Electric companies, Moore said.

"I think to be fiscally responsible, it's time," said Alderman Barbara Lohr after the meeting. "Considering it's about 50 cents per month, I just don't think we can do any better than that. We'll still be the lowest provider of electricity. When you consider how efficiently we've been running, I think you have to say our people have done a great job."

Schuette said he didn't have a firm estimate of how much extra revenue the city would take in as a result of the increases.

bmiller@semissourian.com

243-6635