LP&L Discusses Possible Billing Strategies to Try To Stabilize Rates

Mayor Glen Robertson shares how the Electric Utility Board is looking at a way to possible stabilize rates in the future.
The Electric Utility Board is considering new billing strategies that they say would ease the kind of sticker shock many experienced over the past summer. A report from the chief financial officer showed a way to possibly stabilize rates in the future, so this past summer does not repeat itself.

"In doing that, your reserves are going to fluctuate a little bit, because you're going to under-collect one month and possibly over-collect, but the idea is to try to level out the rates so that we don't see a rate shock like we experienced this summer," Mayor Glen Robertson said.

It's currently just an idea, but the Electric Utility Board is discussing ways to stabilize the cost you pay fro fuel. Mayor Robertson, who is a non-voting member of the EUB, said it all goes back to the cost of the fuel factor.

"Problem with that fuel factor is it's volatile," Mayor Robertson said. "It moves monthly and sometimes very big swings, and so as a result, people are seeing these very big rises in their electricity bill and we're seeing a lot of rate jumps."

Over the last few months, City Council and the EUB have heard from frustrated residents about their bills. A fuel cost change could eventually give some evening to the rates.

"If everything comes together like we all hope, this will smooth out those peaks and valleys and your rates still going to go from summer rate to winter rate but this should smooth out that fuel cost recovery factor," Mayor Robertson said.

The Mayor said this was a long discussion Wednesday during the executive session, and something they will continue to discuss before any changes are made. Those changes will also then have to be approved by the City Council.
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