In a recent government meeting, officials discussed the pressing issue of the power cost adjustment, highlighting the need for an increase to stabilize the electric fund. The current adjustment rate of one cent per kilowatt is projected to lead to a negative balance by early 2024, particularly during high-demand winter months. To address this, a recommendation was made to raise the adjustment to two cents per kilowatt effective October 1, with a potential increase to 2.5 cents in April.

The discussion revealed that maintaining a reserve of $3 million is critical for the electric fund's sustainability. However, rising transmission costs—up by 20%—have significantly impacted the fund, necessitating the proposed rate adjustments. Despite the increase, officials noted that the utility remains competitive in the region, with rates still lower than those of larger providers like Duke Energy.

The meeting underscored the broader challenges facing municipal electric utilities, particularly those reliant on transmission services from larger companies. Officials emphasized the importance of transparent communication with the public regarding these changes, promising to issue notifications and updates through various channels.

As the electric industry continues to face volatility, the proposed adjustments aim to ensure the financial health of the utility while maintaining competitive rates for consumers.