Study Recommends Raising Wymore Rates

By Gordon HopkinsAn electric rate study completed for the City of Wymore recommends raising rates.The study was completed by JK Energy Consulting, LLC, based in Smithfield, and recommends an increase of 8.1 percent in 2024 and 8.0 percent in 2025.The purpose of the study was to review the financial performance of the city’s electric utility and develop rates that reflect the cost of service. A report was given to the Wymore City Council by JK Energy president John A. Krajewski, P.E., who said, “First thing is look at financial performance of utility. If the utility doesn’t bring in enough money to pay its bills, you’re going to have a problem. You don’t bring enough money to keep your lines maintained, replace things that are going bad, replace aging facilities. That’s not good, either.”The reports states, “Existing all-electric rates are much lower than the cost of service.”“Part of what I’m proposing is that you implement some rate changes so that you can make sure your system stays in shape and is is reliable and your customers are served.” Krajewski emphasized he is not recommending an 8.01 percent raise across the board, “Next thing is to make sure that each of the customer classes are paying what they should.”The report proposes rate design changes that includes implementing a monthly customer charge, “designed to recover the cost of serving a customer regardless of the amount of energy sold.”The report recommends the city, “Increase all-electric rates more than other rate classes at some point in the future,” and also, “Close the all-electric rate classes to new customers.”The report also concludes that, “Proposes rates are comparable to neighboring utilities.”Krajewski added, “I think what’s affecting the electric utility, other than purchase power, is definitely more than 8 percent inflation.” City Councilperson Max Allen noted that a study of water and sewer was done ago years ago, “At that time we did not raise electrical rates because the water and sewer rates did increase significantly.”Allen said, “I’m sure behind on where we need to be.”Wymore Superintendent Tim Sedlacek told the council, “Listen, I’m not looking forward to any more than you guys are.”A motion to raise rates requires three readings at council meetings before it can be implemented, although readings can be waived by a vote of the council. The council opted not to waive the readings to give the public an opportunity to comment at city council meetings.

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