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Electric rate hike being looked at
Concern about electricity costs led the Lakefield Municipal Utility board to request a look at a possible rate hike during its meeting Tuesday, Oct. 13.
In a review of the financials for the first three quarters of the year, City Financial Manager Cheryl Ulferts told the board she was concerned because the electric power purchases this year have “gone up quite a bit and, despite revenues also being up ... our profit is falling some.”
Ulferts noted that this was apparent in a net income decline of $32,325.76 through September.
In answer to a query regarding when the utility last raised electric rates, City Superintendent Jim Koep informed the board that it has been a couple of years. This led the board to recommend that the electric committee look into the matter and present its findings at the regular November meeting of the board.
Information provided at the meeting showed that an increase of 13.3 percent in the utility’s energy cost from the Western Area Power Administration is expected to go into effect on Jan. 1, 2010. It was also noted that WAPA’s rates have increased 134 percent from 2003 to 2010.
For more news from the utility meeting, including the status of cable television, see the Oct. 22 issue of the paper.
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