By Greg Chandler
Zeeland Record
The Zeeland City Council Monday unanimously approved the Board of Public Works’ first electric rate increase in more than 15 years, and also passed rate hikes for water as well.
The council approved a 1.5 percent rate adjustment for BPW’s electric customers and a 4.9 percent hike for the utility’s water customers. The increases go into effect Jan. 1.
BPW General Manager Andrew Boatright said that the electric rate increase will be the first in a series of rate adjustments.
“We’re looking at (increases) in each of the next three years, at least,” Boatright said. “We’ll take a look at it every year from a cost-of-service standpoint to make sure the adjustment is adequate.”
BPW hired Utility Financial Solutions LLC, a consulting firm, earlier this year to review the utility’s cost of service and its electric rate structure. UFS recommended 1.5 percent increases for each of the next three years.
For a typical residential customer that uses 600-700 kilowatt hours of electricity per month, the expected increase will be between $1.48 and $1.56 per month, according to a UFS report to BPW.
The 4.9 percent water rate hike for next year matches a similar increase that took effect earlier this year. The adjustment addresses both fixed costs and usage rates.
For a typical residential customer with a 5/8-inch meter that uses about 8,000 gallons of water a month, their monthly bill will increase $1.56 from $24.28 to $25.84, according to a memo from UFS to the city.
Despite the increases, Boatright said that both the electric and water rates are well below those of nearby competitors.
Zeeland Record
The Zeeland City Council Monday unanimously approved the Board of Public Works’ first electric rate increase in more than 15 years, and also passed rate hikes for water as well.
The council approved a 1.5 percent rate adjustment for BPW’s electric customers and a 4.9 percent hike for the utility’s water customers. The increases go into effect Jan. 1.
BPW General Manager Andrew Boatright said that the electric rate increase will be the first in a series of rate adjustments.
“We’re looking at (increases) in each of the next three years, at least,” Boatright said. “We’ll take a look at it every year from a cost-of-service standpoint to make sure the adjustment is adequate.”
BPW hired Utility Financial Solutions LLC, a consulting firm, earlier this year to review the utility’s cost of service and its electric rate structure. UFS recommended 1.5 percent increases for each of the next three years.
For a typical residential customer that uses 600-700 kilowatt hours of electricity per month, the expected increase will be between $1.48 and $1.56 per month, according to a UFS report to BPW.
The 4.9 percent water rate hike for next year matches a similar increase that took effect earlier this year. The adjustment addresses both fixed costs and usage rates.
For a typical residential customer with a 5/8-inch meter that uses about 8,000 gallons of water a month, their monthly bill will increase $1.56 from $24.28 to $25.84, according to a memo from UFS to the city.
Despite the increases, Boatright said that both the electric and water rates are well below those of nearby competitors.
