Electric Rate Breakdown Summary
Power Department Expenditures |
Budgeted Amounts
|
Residential Cents/kwh |
Power and fuel costs |
11,952,000 |
5.58 |
UAMPS Cost Recovery Charge |
708,000 |
.30 |
Debt Service |
2,538,930 |
1.08 |
Distribution System Operating Costs |
2,024,717 |
.86 |
Whitehead Generation Operating Costs |
1,775,722 |
.75 |
Capital Improvement Projects |
1,177,800 |
.50 |
Administrative Transfers |
496,210 |
.21 |
Operating Transfer to the General Fund |
455,600 |
.19 |
Equipment Repair and Replacement |
214,500 |
.09 |
Reserves |
175,000 |
.07 |
Total Power Department Budget |
* $22,087,208 |
9.65¢
|
*does not total exactly due to rounding
LOOKING CLOSELY AT THE COST OF POWER
One of the major goals of the Mayor and City Council is to continue to try to reduce the cost of your power bill, while at the same time maintaining a reliable, stable power system. The following chart shows the various components that go into your power bill.
Springville is exploring options and costs of entering into some long term coal contracts which will help reduce our power and fuel costs. Several new coal power plant projects are in the early project discussion stages. Springville is participating in these discussions. Springville has an ownership share in the Nebo Power Plant project in Payson which is a natural gas plant. This plant came on line in June 2004, but has not been producing much power because of the current spike in natural gas prices. Springville is exploring options to lease out part of its ownership share in this plant. The City is looking at leasing some of its ownership in transmission lines in Utah . The UAMPS cost recover charge will be eliminated in March of 2006 and the City’s Debt service expense for building the Whitehead Power Plant and rebuilding Springville’s distribution system will be paid off in 2009. These two items alone will reduce the cost of power by about 1.5 cents per kwh. While these reductions will not happen immediately, the plan is in place so that they will be eliminated over the next few years. The Springville City Power Board is a citizen staffed board that listens to your concerns and is discussing long and short term plans to help us reduce the cost of power. This Board meets monthly and any citizen is welcome to attend the meeting. They meet at City Hall on the second Wednesday of each month at 6:00 a.m.