Mt. Pleasant makes power cost adjustment permanent

MT. PLEASANT—The Mt. Pleasant City Council unanimously approved a resolution Aug. 11 revising the city’s electric rate schedules and incorporating a power cost adjustment (PCA) into base energy rates.

A power cost adjustment is a change in previously approved rates based on current wholesale power costs.

The new rates will take effect with the city’s upcoming Sept. 1 billing cycle.

The council approved the resolution 3-0, with council members Russell Kiesel, Rondy Black and Cade Beck voting in favor. D. Lynn Beesley and Jakob Howcroft were absent.

The resolution, presented by Power Superintendent Shane Ward, amended previous city rates and established updated rates for residential, commercial, agricultural, temporary and time-of-use electric customers.

Under the new residential schedule, customers will pay a $21 monthly base charge. Electricity usage will be billed at 11.9 cents per kilowatt-hour for the first 500 kilowatt-hours and 14.05 cents per kilowatt-hour for usage above 500 kWh.

Most commercial customers will pay a $28.25 monthly base charge, with the first 1,000 kWh billed at 11.9 cents per kWh and additional usage at 14.05 cents per kWh.

Agricultural customers will have a $16 monthly base charge, with energy rates ranging from 11.9 cents per kWh for the first 1,000 kWh to 8.76 cents per kWh for usage above 9,000 kWh.

The new schedule also establishes rates for temporary service and agricultural time-of-use customers. Time-of-use customers will pay 14.05 cents per kWh during peak periods and 8.43 cents per kWh during off-peak periods.

Dave Oxman, the city’s finance director, said the change was driven primarily by rising electricity market costs.

“With the rising electric market rates over the last couple years, various factors like the coal industry, the PCA was becoming a permanent cost,” Oxman said. “In essence, the PCA was set to zero and the rate increased.”

Oxman said the restructuring is not expected to produce a significant change in what most customers pay. Instead, the power cost adjustment that previously appeared separately on bills will be incorporated into the city’s regular rate structure.

“The bill will look vastly different, but the overall amount will be a minor, nominal increase,” Oxman said.

The resolution also gives the council authority to adopt, modify, suspend or reestablish a power cost adjustment through future resolutions when necessary.