This week, the Rolla Board of Public Works opted against planning for a utility-rate increase in the Rolla Municipal Utilities 2009 budget, but hinted it will “revisit” both  electrical- and water-rate increases once the budget is in place.

While a rate increase for RMU customers may not be in the utility’s 2009 budget, it is imminent, as RBPW President Dr. James Stoffer hinted Monday.
Rolla customers are not alone.

For example, residential electrical customers in Salem will see a 13 percent rate increase beginning Aug. 1. Salem is a customer of the Show-Me Electric Cooperative.
According to a report in the Salem News, aldermen held a special meeting Monday to discuss electric-rate increases of 5, 10 and 13 percent in an effort to balance the budget and put money into the electrical reserve fund. Aldermen also approved a $9.9 million budget and restored $22,000 in budget cuts the finance committee had recommended Thursday.

According to Salem Mayor Gary Brown, the 5 percent increase would have left the city with a budget deficit of $188,857. It was not considered. A 10 percent increase would give the city a $51,757 surplus, while the 13 percent would have resulted in a $201,367 gain.

Salem aldermen were split on the 2-2 vote on the electric-rate increase. Brown broke the tie by casting a yes vote in favor of the increase.

The new rates for residential customers will be 8.5 cents for each kilowatt-hour with a minimum charge of $16.52 for 200-kilowatt hours or less. Commercial customers will be charged $33.04 for 400-kilowatt hours or less and a demand rate of 7.6 cents per kilowatt-hour plus a demand charge.

 Rolla electrical customers currently pay 9.3 cents per kilowatt hour.

The 13 percent increase for Salem residential customers will allow the city to put as much as $100,000 into the electric reserve fund, which could help pay for another raise from Show-Me Power in December. That fund now has $667 with another $6 in interest expected.