Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Electric Rates topic
No spam. Unsubscribe anytime.
Baldwin City corrects electric-rate math, adopts revised ordinance to refund July overcharge
Summary
The council approved a corrected electric ordinance (15‑17) after advisers discovered the July rate change double‑counted a meter/debt charge; council chose Option 2 — a lower ongoing kWh rate with repayment spread over five months — and approved the ordinance 4‑0.
Baldwin City Council voted unanimously to adopt a corrected electric-rate ordinance after advisers discovered a calculation error in a July rate increase that double‑counted an increase to the meter (now called the debt service) fee.
Baker Tilly, the city’s rate consultant, told the council the original motion intended to raise total utility revenue by 10 percent but the subsequent inclusion of a $25 meter/debt fee in the rate calculation meant the fee was effectively counted twice. ‘‘The meter fee combined with the new rate will be a 10% increase rather than what was previously passed, which did not take that into account,’’ a Baker Tilly presenter said during the meeting.
Council discussed two remediation options. Option 1 would issue a one‑time credit to each electric meter for the July overcharge — identified in discussion as roughly $13.20 per meter — and set a corrected ongoing rate going forward. Option 2 lowers the ongoing kilowatt‑hour rate (to about 14.11¢ for residential non‑demand customers, as presented) and spreads repayment of the July overcharge across the next five months based on forecasted kilowatt‑hour usage.
Supporters of Option 2 argued that, because summer usage may remain high, reducing the ongoing rate could deliver greater savings over time to many customers. Opponents raised forecasting uncertainty but councilmembers and finance advisers said the city’s reserve forecast and policy targets support the correction. ‘‘We caught it, and the only overcharge is in July. Otherwise, it would be every month,’’ one council member said.
Councilmember (mover) offered a motion to approve rates in Option 2 for ordinance 15‑17; the motion was seconded and passed on a 4‑0 roll call (affirmative votes recorded for Scott, Corey, Susan and Jay). The ordinance is intended to make the combined effect of the corrected kWh rate and the $25 debt fee match the council’s original 10 percent revenue objective while limiting the July overcharge’s impact on customers.
The council directed staff and finance advisers to continue monitoring usage and reserves and to revisit rates if actual usage diverges significantly from forecasts. The meeting record shows the city identified an overcharge amount on the order of $30,000 overall for July; staff said they will implement the chosen option immediately and continue outreach to explain the change to customers.
The council took the vote as part of a larger agenda and did not delay other business.
