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Bedford council approves temporary $10 utility surcharge to cover power-cost shortfall
Summary
The town council voted to apply a $10 surcharge to all customer electric accounts for 24 months to recover a roughly $2 million power-cost shortfall tied to winter-storm expenses; council asked staff to revisit the measure in September.
The Bedford Town Council voted May 5 to apply a $10 surcharge to all electric customer accounts for 24 months to recover a shortfall in the utility's power-cost-adjustment (PCA) account caused largely by an unusually cold winter. The motion passed with five members voting in favor.
Town staff presented two options to the council. Option A applies a flat $10 surcharge to every customer account for 24 months and is designed to recover the under‑recovery without drawing on reserves. Option B would change the town's rate tariff to shift more of the PCA burden to high-usage commercial customers by eliminating the first residential block of the rate and using reserves to offset some costs.
John Wagner, identified in the meeting as the director of the electric utility, said Option A "is designed to collect all of the under recovery. So it would not cost the town." He explained that Option B would shift costs to large users and likely preserve lower bills for most residential customers but would require a new rate ordinance and use of fund reserves. Staff also reported a recent $1.3 million one‑time inflow into the electric fund from a lease‑purchase settlement, which alters the town's near‑term reserve position.
Council members debated fairness and financial risk. Several members said they preferred spreading the cost among all customers for a limited, temporary period; others favored protecting low‑use residential customers and targeting larger users. In discussion, staff and councilors agreed to review collections and the fund balance in September and adjust if warranted.
The council recorded the motion to adopt Option A and specified a September review. According to staff presentations, leaving the PCA to self‑adjust would have increased the typical residential customer's bill by roughly $24 per month; the approved surcharge reduces that immediate impact by spreading recovery over 24 months.
The council also directed staff to return in September with updated collection data and a recommendation if conditions require further adjustment. No changes to the town's base rate were adopted that night.
