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The Kahoka City Council took steps Tuesday evening to stem the bleeding of $15,000 per month in the city’s electric department. The monthly loss was due to a sharp increase in the transmission costs from Ameren, the city’s electricity provider.
Earlier in September, Kahoka Program Director John Williams explained the situation to the board of aldermen, and presented three plans to raise the city’s electric rates.
At a special meeting on Tuesday, September 22, the board consider Williams’ proposals.
“Nobody I’ve talked to about has been opposed,” said Alderman Les Billings. “They knew it was coming.”
Alderman Orlie Yoder added,” I want to be business-friendly as well.”
The board approved a plan which raises the smallest users, those using less than 2000 kilowatts per month, from 10.5 cents per kilowatts to 11 cents per kilowatts, or an increase of a half-cent, or about ten dollars a month, depending on usage.
The plan eliminates a reduced rate for consumption between 2000 kilowatts and 3000 kilowatts, and raises that rate from 9.5 cents per kilowatt to 10.5 cents kilowatt.
Users in the next bracket, from 3000 to 15,000 kilowatts per month, will see the largest increase, going from nine cents per kilowatt to 10.5 cents per kilowatt. Many of these users are businesses.
The largest users, those consuming over 15,000 kilowatts, will see their rates increase from 8.5 cents per kilowatt to 9.5 cents per kilowatts.
The board also approved changes to the monthly price of rented lights. Small lights will now cost $12.50 per month, medium lights will cost $19.50, and the largest rental lights will cost $56.00 per month.
“We have to be able to fund the system for the future,” said Mayor Jerry Webber.