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MMED moves to shift charges, citing $2.3M rise in purchase-power costs
Summary
Mansfield Municipal Electric Department approved FY2027 rate changes that shift charges from energy to distribution and raise demand charges after staff and consultant reported $2.3 million higher purchase-power costs and flat sales; the board approved the adjustments unanimously.
Mansfield Municipal Electric Department managers told the Light Commissioners that purchase-power costs for FY2027 are roughly $2.3 million higher than the prior year while retail sales remain flat, driving a proposed realignment of customer charges. The board approved a package of rate changes intended to rebuild stabilization reserves and move rates closer to cost of service; the vote to approve the FY2027 rate adjustments per the J. Pereira memo passed 5–0 (motion Feck/Roche).
Staff recommended a 0.5-cent increase to purchase-power charges, an increase of $3.00 per kVA to demand charges, and offsetting adjustments to distribution and energy charges to target a 4% overall rate of return (the existing distribution rates produced about a 2.7% return in staff analysis). Commissioners questioned drivers of the distribution increase; staff said inflationary pressure on non-power expenses — notably higher tree-trimming and vendor costs — are principal contributors. The board recorded that the net effect of the approved adjustments was a small decrease in customer bills relative to rates the commission approved in March.
