It has been 22 years since Provo City Power has raised the electrical rates.  Provo has been fortunate over this period of time to handle the fluctuation with the electric market and has managed the operations at a good value to consumers.  However, the costs are going up and the Utility can no longer cover the increased operating costs without additional revenues.  Recently, a Cost of Service and Rate Design Study was conducted by R.W. Beck, a consulting firm out of Colorado which concluded that a rate increase is necessary.

 

During a public meeting held on March 8th, 2010, (view the meeting and the minutes), the Rate Recommendations were presented to the Energy Board and Municipal Council.  The findings of the study conducted by R.W. Beck shows that the rate needs to increase about 17% in order to maintain a reasonable fund balance for the next three years.  This was based on expense data and forecasts supplied in 2009.  The original proposal called for a 9% rate increase although new forecasted numbers and revised budget estimates call for a rate increase to be closer to 11% rate hike to go in effect June 1, 2010 with an additional increase of 6% in the coming year.

 

We invite the public to offer their comments by sending an email to comments@provo.utah.gov or by sending a letter to the following address:

 

Provo City Power
Attn: Kathryn Linford
251 West 800 North
Provo, UT  84601

 

We also invite you to attend the public hearing scheduled for May 18th, 2010, in the Provo City Municipal Council Chambers located at 351 West Center Street.