Utility rates to increase 12 percent

By Jeff Bunn
Capital Journal staff
Published/Last Modified on Wednesday, Nov 25, 2009 - 03:11:56 am CST

PIERRE — After weeks of discussion, the Pierre City Commission increased utility rates by 12 percent Tuesday.

The three percent increases in water and wastewater rates and six percent in electrical rates will be applied to January bills and continue through 2010.  

The increases come in response to a 13 percent increase in price from Western Area Power Administration and to pay for operations. Included in the six percent electrical rate increase, 2 percent is to be set aside to begin paying for a multi-year investment in $21 million electrical system overhaul.

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In 2010, the commission will determine the length of the loan to pay for the system. That work will be paid through reserves as well.

In 2010, the average residential user can expect to pay an additional $10.54 a month in utility bills.

The commission has looked at 20-year and 30-year loans for the major electrical system work. In either case, residents will pay 2 percent increases in utility rates from 2010 to 2015 and a one percent increase in 2016. After 2016, the average residential user will pay $20.20 for infrastructure improvements until the loan is paid off.

One resident, who attended Tuesday’s meeting, spoke against the prospect of residents paying $20.20 each month in the future independent of utility rate adjustments for things such as inflation.

“You’re grandkids won’t be able to live in Pierre because of the utility rates,” John Manning said.

The electrical system project is set to be completed in two phases, beginning in 2011 with construction of a new substation and new lines. In 2015, the city would upgrade substations to fix a system that is faulted for a record number of power outages over the summer. Coincidentally, an outside agency identified the deficiencies in the system through a planned study after the blackouts.

“We’ve been working on this issue for a long time,” Mayor Laurie Gill said. “I want to make sure the commission has all the information as we’re starting to work through the bonding issues.”

Gill said she expects loan discussions to occur in about nine months. She said it’s possible the second phase of the project will be less expensive than expected as technology might reduce costs.

All commissioners said they received comments from the public about the future work.  Jamie Huizenga said he too will be paying for the increases in future years.

“I consider this responsible planning,” he said. “We are at capacity. We need to take that seriously.”

The work will allow more power to go to developing parts of the city, namely the northeast section of Pierre.

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Comments

22 comment(s)

    To DDF wrote on Dec 10, 2009 3:58 PM:

    " Do you have to use that intersection at 7:45 am or Noon or do you just go by there at 5?? That place is a hazard at each of those times every day! It is VERY dangerous - all year round. During the summer traffic is driving faster & those kids are playing outside-even though in a fenced area if there was a bad enough wreck to cause a vehicle to crash into there...how horrific would that be! Put up the stoplight!! Isn't there a union for the city workers? Bet it helps to get them raises!! "

    Roger wrote on Dec 9, 2009 7:04 PM:

    " I wonder if Lauri and Leons streets got plowed? Pierre plowing program needs revamping. "

    YAY wrote on Dec 9, 2009 2:48 PM:

    " With all this extra cash does this mean we get a snow plow in town to plow the streets? "

    Any snowplows wrote on Dec 9, 2009 6:32 AM:

    " Has anyone seen or heard a snowplow today? I am guessing they are saving that money so they can give their employees a raise, yet we have to have crappy roads to drive on!!! They'll just let it get compacted down so the roads are permanently slick ALL winter. "

    DDF wrote on Dec 7, 2009 6:30 AM:

    " A stoplight on Euclid is only needed for something like 30 minutes a day. I never have problems there except from 5 - 5:30. "

    to 4th and Euclid wrote on Dec 5, 2009 10:22 PM:

    " I've asked the same question--to a city official. "Euclid" is also US HWY 83 and the state has control of that roadway--it decides where stoplights do and do not go and based on their traffic calculations, a light is not needed, even though it has been requested. The HWY83 label also puts "Euclid" on mapquest for truckers who can operate computers, but can't read road signs or see bright flashing lights and drive into the RR bridge. The good news--the state is responsible for "Euclid". The city doesn't have to pay to pave it. "

    4th Euclid wrote on Dec 4, 2009 6:07 AM:

    " Why doesn't the city take some of this money they make every year on our utility increases to invest in a stop light at 4th and Euclid?? Something that should be more important than a water park or parking garage. Traffic is horrible up there, and people coming in from north of town don't slow down. I suppose its going to take someone getting seriously injured or killed before they will do something. "

    RE TO to all wrote on Dec 4, 2009 6:03 AM:

    " City workers under paid? Some of those in city hall are over paid, but most job announcements that I've seen for the city have been for way more than what state workers make.

    State workers are under paid. The problem is the public looks at the big wigs of the departments rather than the low dogs on the totum pole. Fact of the matter is, the grunts barely make enough to cut it. Go look at some of the job announcements - starting pay under $10/hour. "

    Satisfied wrote on Dec 3, 2009 9:38 PM:

    " I have a great way to add money to the cities coffers. The police need to actively enforce the posted speed limits in town. A couple mph over would be acceptable but anything over that needs to be ticketed. It wouldn't take any extra effort either. Set up in a couple of school zones or the block the hospital is on and it would be a gold mine every day. Another sure fire one is the yellow light runners. Lets not forget failure to use turn signal. The best part is it free money. "

    Tim wrote on Dec 2, 2009 4:31 PM:

    " City and State workers are under paid? "

    To To All wrote on Dec 2, 2009 6:44 AM:

    " Yes, you are right. We need to take an active part.

    Also, yes, some City workers are underpaid compared to others but so are some state workers but they are now taking two years without a raise because there is no money. I feel the City workers should take the same!!!

    Yes, I would like to live with lights and running water too, but my point is that if the past 10+ years, the City wouldn't have took $ from the electrica reserve, we wouldn't be in this boat. They need to start spending more wisely!!! "

    To All wrote on Dec 1, 2009 9:52 AM:

    " If you are upset, go to the city commission meeting/watch them on TV, Tuesday & Wednesday nights. Call your commissioners. You can't complain unless you take an active part in the process.

    I am not happy with the increase either, but I like to turn on the lights and have running water too! The $ is better spent on electrical upgrades then a water park.

    On average the city workers, whom do the real work, are underpaid compared to other cities similar in size. Look to the people downtown, engineer & human resources they are overpaid. "

    They Will wrote on Nov 30, 2009 7:05 AM:

    " The City workers WILL get a raise. They have every year and every year the City has taped in to the electrical $ for the upgrades that are now needed. If the City would have spent responsibly in the past, this wouldn't be happening. I haven't seen a vote on anything in the past 10 years that involves the City and their spending. How come the citizens never get a say? Because they know we would thinks responsibly and turn down most of the unnecessary stuff they propose!!! They want our input just so they can laugh in our faces. "

    fairness wrote on Nov 29, 2009 7:12 PM:

    " yet the city allow large users to master meter their account and stick it to the little user. "

    Why... wrote on Nov 27, 2009 10:32 AM:

    " Do the commissioners think about the people who rent the apartments are now going to face different challenges. I got 3 kids and it looks like I have to find a lower rate apartment or whatever is available to make ends meet. I guess where I came from before I moved here last year was a better rated. Pierre doesn't seem to be the place to live anymore. "

    DDF wrote on Nov 25, 2009 9:00 PM:

    " Good plan Utility Rate Payer. I'm not shopping in Pierre either. Let them learn how to budget their money. Online shopping. Many times no tax and free shipping. We gotta save money somewhere if we're going to live in this town. "

    The Reason Why... wrote on Nov 25, 2009 7:44 PM:

    " The reason why new Commissioners vote the same as the old is because the same type of people run - a "good ol' boy network" so to speak. Isn't it delightful? "

    thanks wrote on Nov 25, 2009 9:31 AM:

    " Thank you to the commissioners for spending money on something that is a "QUALITY OF LIFE" issue.... I would rather have my lights and water, than a water park! Thank you for being responsible! This citizen appreciate it. "

    Good Timing wrote on Nov 25, 2009 7:45 AM:

    " I guess that's just less money in our pockets to spend locally. In a time when people are getting laid off, taking pay cuts and not receiving cost of living adjustments, you are going to tack on more. How about trimming some costs elsewhere to off-set it or is increasing costs just that much easier? We'd better not hear about city employees getting pay increases. We all need to take a bite of that sandwhich. "

    Utility Rate Payer wrote on Nov 25, 2009 7:37 AM:

    " There goes my christmas shopping, and if I do go shopping it won't be in Pierre, because I don't what the city getting anymore of my tax dollars than they have to. Why does the city need to net $2.5 million from their electric uitlity every year, why can't they use this revenue to fund the improvements instead of using it to fund the other inefficent operations of the city. It is the same every year, we get new commissioners on and they do the same thing. I am tired of paying more and more forlessservices "

    WW wrote on Nov 25, 2009 6:31 AM:

    " You know what we need now? A waterpark next to the river and a parking garage for a street where no one goes. Good job commissioners! "

    Fed Up wrote on Nov 25, 2009 5:23 AM:

    " I challenge the City Commission to try to raise 2 kids and work 2 jobs and pull in a whopping $15,000 at year. Plus on top of that, keep paying increases in eletrical rates. Now, nearly a full hour of my pay each month will go to pay the increase. Shame on you for not finding a better way! I may be poor, but I vote religously. "

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