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HMP&L says fiber buildout on schedule; cost study shows little cross-subsidization of rates
Summary
Henderson Municipal Power & Light told commissioners its fiber buildout is on schedule and under budget, has reached about 1,000 of 3,500 anticipated customers, and that a cost-of-service study shows little subsidization between customer classes; any needed rate increase is expected to be under 6%.
Henderson Municipal Power & Light managers updated the Board of Commissioners on Jan. 27, reporting progress on a multi-year fiber buildout and preliminary findings from a cost-of-service study.
Brad Bickett, HMP&L general manager, said the preliminary study “shows that the rates are equitable, finding that there is not much subsidization between customer classes,” and told the board that if an increase in revenue becomes necessary, it is anticipated to be less than 6 percent. Bickett also said the utility has secured three large power contracts that will provide resources through about 2030 and that preliminary analysis identifies natural gas resources as the lowest-cost option over a 20-year horizon.
Chad Kietzman, HMP&L director of telecommunications, reported that fiber construction to date has been completed on schedule and under budget and that market penetration stands at roughly 1,000 customers of an anticipated 3,500. Kietzman said HMP&L has been relying primarily on word-of-mouth for marketing while ensuring internal control processes are in place before a broader marketing push.
The commissioners commended HMP&L on delivery of service and the progress of the fiber buildout. No rate changes were proposed at the meeting; the cost-of-service study was described as preliminary and further analysis or formal proposals would be required before any rates are altered.
