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City Hall takes steps to give residents a break on electric rate
Source: Burns & McDonnell
Dover, Del. — THE QUESTION
What is going to happen to the electric rate for city of Dover customers in 2013? Is it going down as expected?
THE ANSWER
City Manager Scott Koenig had told Dover City Council that he estimated that the electric rate would be reduced by about 12 percent based on the comprehensive electric cost study performed by Burns & McDonnell Engineering Company to look at potential rate adjustments for the electric utility.Ted Kelly, a principal with Burns & McDonnell based in Kansas City, Mo., verified that reduction to City Council at its May 29 meeting.
In fact, the base rates can be reduced by 12 percent for 2013 and reduced 4.25 percent in 2014 and 2.25 percent in 2015, Kelly said.
The current, base rates were implemented on July 1, 2008 but there had been some changes since that time, Kelly said. One of the big changes was that purchased power expenses went down 13 percent since then, he said. The city had reduced the amount of power it supplies by cutting out some outlying areas. In total, electric operating expenses were down 6.5 percent since 2008. As a result, the city was charging customers too much and it was time to reduce the rate while still operating at a profit, Kelly said.
“The overall good result here is the fact that we’re coming here with a rate reduction, which is not something that I get to do very often” he said. “In most places around the country, it’s been a while since there’s been a rate reduction.”
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