Jackson residents: Continue electric rate discounts

The pain of major electric rate increases faced by Jackson residents would be eased somewhat by keeping the current early pay discount program. Many of the more than 30 residents attending said so Monday night at a Jackson Board of Aldermen electric rate public hearing.

Consultants with Burns and McDonnell of Kansas City, an engineering firm that conducted the electric rate study, Monday night presented two options the aldermen could approve to help offset increasing wholesale electricity costs.

The first option is to implement a series of three 11 percent rate increases and eliminate the early pay discount program. The second option would be to implement three 12 percent rate increases, and continue the 10 percent discount for residents who pay by the 10th of the month.

The second option would better suit Trixie Moore. "My rent just went up. I'm living on bare necessities," she said. "Please keep us older people who are living on a fixed income in consideration."

Both Alderwomen Val Tuschoff and Barbara Lohr agreed the second option appeals most to the 75 percent of Jackson residents who utilize the discount program. "From the people I've talked to, most do want to keep that 10 percent discount," Lohr said.

Ted Kelley, a consultant with Burns and McDonnell, said the series of three 12 percent rate increases would increase the average resident's electric bill approximately $22 per month.

Jackson will experience a significant increase in the cost of electricity it purchases over the next few years. The city purchases approximately 40 megawatt hours of electricity per month. The current rate for one megawatt is $40. By 2007, Kelley said, one megawatt of electricity is expected to increase to $67.

Increased costs of electricity are attributed to higher gas prices, federal energy policies on deregulation and environmental restrictions, Kelley said.

Jackson, which operates its own electric distribution plant, is a wholesale customer of electricity.

When the city's contract with Ameren Energy Marketing expires at the end of the year, it will sign a new contract with the Missouri Public Energy Pool. MoPEP is an electric supplier for 30 cities across the state.

JD Lester, a spokesperson for MoPEP, said the electric pool has negotiated energy contracts that will supply the city with at least 100 megawatts for three years or more.

Jackson's contract with MoPEP will be more expensive than its current contract but will reduce short-term electricity purchases, which can be three to five times more expensive, said city administrator Jim Roach.

The Board of Aldermen will approve one option for the increased electric rates by Sept. 11, said Larry Koenig, assistant city administrator. The first rate increase would be included on the Oct. 1 bill.

jfreeze@semissourian.com

335-6611, extension 246