During the monthly city council meeting last week, the board members approved to enter Phase One of the proposed electric rates from the CH Guernsey Rate Study.
City Manager Bob Pearman said this rate change is revenue neutral, which means there will be no changes in the amount on incoming revenue.
The base rate will increase, but the rate per kilowatt will decrease.
For residential, the base rate will increase from $7.84 to $12, but the kilowatt rate will drop from 11 cents per watt to 10 cents.
For commercial, the base rate will increase from $20.85 to $25. However the kilowatt rate will decrease by either 12 cents or 11 cents, depending on how many kilowatts are used.
These changes are for the summer rates. Pearman said these rates
Pearman said these rates will go into effect June 1, 2020.
According to the results of the rate study, the cost to the city to provide its service to each consumer is $42.15, which includes the lines, poles, employees, etc.
Pearman said this a different way to recover that cost.
The City of Stroud approved to have this rate study completed by CH Guernsey in February of 2019.
The cost for the study was $18,000, but the GRDA paid $10,000 towards the project.
Other actions made by board members include:
Approval of the Proclamation declaring April Fair Housing Month.
Approval of the Project H.E.A.R.T., Inc. lease agreement effective July 1, 2020.
Approval to use the Parks and Recreation Lodging Tax for 4th of July fireworks, Main Street Sign, Sac and Fox Pow Wow and Deep Fork 66 Tourism Membership.
Approval to reappoint Adam Chace as Stroud Hospital and Development Authority Trustee term to expire June 30, 2023.
Approval to reappoint Tammy Smith as Stroud Hospital and Development Authority Trustee term to expire June 30, 2023.