Utility rates going up again
by Susan Mires
Wednesday, August 27, 2008

Utility rates only know one direction: Up.

And more hikes are on the way. Consumers already bearing the burden of higher fuel and food prices are doing their best to adjust.

St. Joseph sewer rates will go up in October; a water rate adjustment is pending and Kansas City Power & Light expects to request a rate increase in the near future.

“We realize any rate increase is a rate increase and we’re going to do everything we can to help customers through a difficult time period,” said Chuck Caisley, senior director of public affairs for KCP&L.

The company wants more money to pay for retrofitting the Iatan I coal-powered plant near Weston, Mo., to meet air quality standards. Other factors driving the increase are higher costs for maintenance, raw materials and labor, Mr. Caisley said.

The last electric rate increase took effect on May 31, 2007, when the Missouri Public Service Commission approved a 13 percent increase for Aquila, raising the average residential bill by $8.79 per month. Aquila has since been purchased by KCP&L.

“I’m tired of all the bills going up,” said Jeremy Peterson.

To try to fight back, he and his wife, Katie, will put energy-saving measures in a new home they plan to build. Solar panels, efficient windows and earth-source heating are in the plans and they’re also looking into drilling their own well for a water source.

“It will end up saving down the road,” Ms. Peterson said of the measures.

Sewer rates for St. Joseph residents will increase about 15 percent beginning in October. The City Council approved the change Monday night to fund improvements to comply with federal water quality requirements.

“We’re trying to make those improvements little by little so we don’t have to raise rates 20 to 30 percent later,” said Judy Hovey, the city’s revenue manager.

Ten years ago, St. Joseph residents paid a flat monthly fee of $8.72, plus 96 cents per 100 cubic feet. After Oct. 1, they’ll pay a monthly fee of $10.96, plus $1.89 per 100 cubic feet.

Water users face a potential 8 percent rate increase this year. Missouri American Water Co. is seeking the increase to pay for capital investment in its system. Water rates went up 29 percent in St. Joseph last year.

Residential customers, however, are using less water than they did 10 years ago, which Missouri American attributes in part to more efficient appliances. Water rates went up significantly in 2000 when the company built a new treatment facility.

As for natural gas users, about 75 percent of a customer’s bill is based on the price of natural gas, which has risen sharply in the last 10 years. The government’s Energy Information Agency expects prices to stabilize this year.

Last year, Missouri Gas Energy changed its billing system, with fixed costs set at the same level each month. The company can apply to adjust rates throughout the year depending on the cost of natural gas.

Susan Mires can be reached at susanm@npgco.com.