Notice of Electric Rate Increase Effective December 1, 2015:
Over the summer of 2015, the Indianola Municipal Utilities Board of Trustees commissioned a cost of electric service study to be performed by JK Energy Consulting of Lincoln, Nebraska. Below are the critical findings of the study and the main drivers for the rate increase.
- The projected electric revenue requirement for FY 2016 is $13.0 million while the projected revenues from existing rates are approximately $11.7 million.
- The primary driver for the need to increase electric retail rates is the increase in wholesale rates by the Municipal Energy Agency of Nebraska (MEAN) over the last four years.
- IMU has accumulated a deficit in the Cost of Energy (COE) bank, primarily because MEAN’s wholesale rates have increased significantly.
- An average 7% increase in electric rates is being proposed for December 1, 2015. Approximately 4.2% of this increase will go towards reducing the COE deficit over the next twelve months and 2.8% will go towards projected electric expenses. The COE adjustment will be suspended.
- An average 7% increase is being proposed for December 1, 2016. 100% of this increase will go towards projected operational expenses.
The actual proposed electric rate resolution is now on file and open to public inspection in the office of the Trustee Clerk, 110 N. First Street, Indianola, Iowa, (961-9410) and in the office of the General Manager, 111 S. Buxton St., Indianola, Iowa, (961-9444).