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Power Department Proposes Major Rate Increase After 12 Years

July 20, 2023 | Murray , Salt Lake County, Utah


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Power Department Proposes Major Rate Increase After 12 Years
In a recent government meeting, officials from the power department presented a proposal for a phased-in rate increase, marking the first adjustment since 2011. The proposed increase aims to address rising operational costs and ensure the sustainability of power services in the community.

The power department's representative highlighted the challenges faced during the unprecedented winter of the previous year, which necessitated the use of reserve funds to maintain service levels. The department has since recognized the need for a structured rate increase to replenish these reserves and align with a newly established reserve policy.

The proposal, referred to as \"option 2,\" suggests gradually increasing the customer charge from the current rate of $3.35 to $10 over three years. This approach is designed to ease the financial impact on residents while ensuring that the utility can cover fixed costs associated with power delivery.

During the meeting, the department's rate expert, Dave Berg, provided an in-depth analysis of the proposed changes, which include adjustments to kilowatt-hour rates during peak and off-peak seasons. The new structure would see rates for residential customers increase incrementally, with specific rates outlined for different usage tiers.

Council members expressed interest in visual aids to help the public understand the proposed changes better, indicating a commitment to transparency and community engagement. The meeting concluded with an invitation for further questions, emphasizing the department's openness to dialogue as they move forward with the proposal.

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