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Coffeyville reviews electric rates as Wartsila engine repairs draw on contingency funds
Summary
City manager says staff is refining an electric-rate proposal and warned that repairs to Wartsila engines are using contingency funds; commissioners expect a vote on rates at the next meeting.
City Manager Ben Brubaker told the commission on March 25 that staff is continuing an analysis of Coffeyville’s electric rates and plans to bring a rate proposal for vote at the commission’s next meeting, and he provided an update on repairs to the city’s Wartsila generating engines.
Brubaker said staff compared Coffeyville to roughly 67 cities and utility organizations and noted that the city’s customer and demand charges for corporate accounts are significantly higher than many peers. He said staff is examining changes carefully to avoid negative economic impacts on attracting and retaining businesses and expects to present recommendations at the next meeting for a formal vote.
On plant repairs, Brubaker updated the commission on the Wartsila engines, saying the project included a $352,000 contingency and that roughly $84,000 of that contingency remained. He said the most substantial issue encountered so far has been damaged springs; staff remains in negotiations with Wartsila over repair costs and said it may exceed the remaining contingency. If the contingency is exceeded, Brubaker said staff will return to the commission for authority to cover additional costs.
Brubaker emphasized that staff wants to make decisions "based on the facts that we have" and to be confident when recommending rate changes. Commissioners asked clarifying questions about timing and inspection plans; Brubaker said staff would present the rate ordinance at the next meeting and keep the public informed as the process continues.
The commission removed the electric-rate ordinance from new business at the start of the meeting to allow additional staff work and public review before a vote.
