COLUMBIA — Columbia Utilities is pushing for an annual electric rate increase.
The proposed 2% base increase is based on the Consumer Price Index for the last 12 months. A memorandum from Columbia Utilities said customers will see a 44 cent increase in base charges.
In a report shared at Wednesday's Water and Light Advisory Board meeting, the city said the increase this would generate approximately $2.8 million in additional revenue and take effect Oct. 1.
The city also said the overall increase in city revenue is necessary to address a continued increase in operation and maintenance expenses, as well as debt coverage.
A chart forecasting the city's electric fund until 2030 shows that Columbia will be more than $15 million below the cash reserve target without the rate increase.
On the other hand, that same chart shows Columbia will be less than $2 million below the cash reserve target with the increase.
Columbia resident and former Assistant Director of Columbia Utilities Jim Windsor said the proposed rate increase is not the right move.
"If the power cost is driving this where they have to have an increase on that side, then, they ought to take the opportunity when they're doing a rate increase, in my view, of adjusting that, so that we aren't paying as much, Windsor said. "And they really shouldn't be raising the base charge."
However, City of Columbia Utilities Communication and Outreach Supervisor Jason West said the increase is warranted due to rising prices.
"Everything is becoming more expensive to provide, and so, we're trying to be able to provide those services at the least amount of intrusion on the customers and the residents."
Columbia Utilities Communication and Outreach Supervisor Jason West said there will be a discussion with Columbia City Council at a scheduled work session Aug. 26. After that, a budget will be discussed and voted on at the City Council meeting on Sept. 8, the next council meeting after the work session.
