Oak Creek to consider electric rate study, supplemental budget Thursday
August 8, 2012
Steamboat Springs — A representative of the Nebraska Municipal Power Pool will join the Oak Creek Town Board meeting by phone Thursday to discuss the preliminary findings of an electric rate study that states the town might need to increase rates in the mid-term.
According to the initial report, the town of Oak Creek does not need to increase its electric rates in the next three years.
But after that time, increases bringing customer rates closer to the costs of the service might be necessary to “maintain net income and cash reserves,” the report states.
However, given that the utility’s cash reserves are well above the recommended minimum, the report notes that it is possible rate increases could be delayed past 2017. The report also states that bringing rates closer to the cost of the service might not entail an increase for some customers.
Oak Creek’s biggest electric cost is purchased power, and that cost is projected to continue to increase.
After incorporating feedback from the town, a final report will be issued with recommendations.
Also on the Town Board’s Thursday agenda are a public hearing for a supplemental budget, a resolution to adopt the supplemental budget and a discussion regarding the town’s hauled water policy.