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Electric rate increase coming
Local electric rates will be going up early next year — now it’s just a matter of how much, according to a decision by the Lakefield Municipal Utility board during its regular monthly meeting Nov. 10.
The board based its decision on information provided by city superintendent Jim Koep, who cited a huge increase in wheeling fees, the amount the utility pays for having electricity transmitted to the local power grid. The information showed an increase in the fees from an estimated $91,150 this year to $209,352 in 2010, a jump of around 130 percent.
According to Koep, the higher transmission costs are the result of projects designed to increase the nation’s transmission grid capacity, and he felt these costs should stabilize within a couple of years as the new capacity goes online. “The Minnesota Public Utility Commission felt that Alliant (Energy Co.) wasn’t doing enough to increase capacity so ITC bought them out and is adding lines, so that’s resulted in the big increases,” he said.
Upon learning of the huge impact the wheeling fees will have on the local utility, the board decided it was time to act on a rate increase, something it has been pondering for a few months now. The rate committee will meet to work out the details on where and how the rate increase will be made. A decision is expected in time for action during December’s meeting.
For more news from the board meeting, particularly a new development in the fate of a city well, see the Nov. 19 paper.
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