The city recently held an open house to allow residents to learn about Naperville’s 2015 electric rate study.
Inaccurate cost projections, overruns at the city’s power plant and borrowing money from the city’s water utility has left the electric utility $44.3 million in debt.
That means a rate increase is imminent for customers. But, how that plays out is currently being considered by the city.
Increases could come at a fixed percentage over the next few years or by variable amounts. In addition to those hikes, city officials have other options on the table to get the fund back on track.
“One would be the issuance of debt, one would be the incorporation of a purchased energy adjustment, one relates to our capital plan and how much maintenance we do over the next years. But the bottom line is we need a rate increase to stabilize the electric utilities financial system,” said Naperville City Manager, Doug Krieger.
Residents were invited to not only learn about the rate study options and provide feedback, but also understand how the city delivers electricity.
“They’ve always been very proactive in telling us about what problems they have, what plans they have, they’ve always kept it very upfront so I’m very confident they are looking for the best option,” said Naperville resident, Alison Brown.
A workshop will be held on November 9th where council members will evaluate the options presented for the rate study.
Naperville News 17’s Alyssa Bochenek reports.
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