Transmission costs will affect electricity costs in 2022 | New
The New Year will bring increased energy costs, not only for residents of the city of Metropolis, but also for those who live in Joppé and Brookport.
And the reason, as corporate lawyer Rick Abell explained to Metropolis City Council at its Monday, Oct. 25 meeting, isn’t the electricity itself.
“One of the things that is happening in the world of electricity is that energy prices have been relatively stable over the past few years. Transmission is where all of the cost increases have occurred and will likely continue for the foreseeable future, ”he said. “It affects everyone to whom Ameren provides power. This will be reflected in their retail rates and wholesale rates. “
Abell explained that the City of Metropolis pays a delivery service charge in its rate schedule and reviews it annually to determine if it is sufficient to cover the rates transmitted by Ameren.
“Looking at this, the rate in place was not enough to cover the latest increase in costs,” said Abell, a board member for the Illinois Municipal Electric Agency (IMEA).
Abell noted that over the past seven years, transmission costs have increased by $ 26.6 million – from $ 14.9 million in 2014 to $ 41.5 million in 2021 – to $ 4.6 million. of the increase from 2020 to 2021.
So, to cover the costs, the IMEA is increasing its delivery costs by 97 cents per kilowatt-month. For residents of Metropolis, this translates to an increase of $ 1.08.
“It’s not huge, but I think the trendline is something we need to think about,” Abell said. “The IMEA will do its best to manage it, but these are costs that are going to be incurred. As the transport providers are bought to put more money back into the network, they will fall back into the rate base and everyone will pay more. “
Metropolis has been part of the IMEA – the Illinois Municipal Electric Agency – since 1986. The city has a full contract with the IMEA which runs until 2035. Metropolis is one of 32 member cities with an agreement to purchase all his electric power at the IMEA until that time. Through these contracts, IMEA finances the power plants and long-term electricity supply contracts it holds. The IMEA is a municipal company with a board of directors made up of a representative of each member and a board of directors made up of four directors and five people in their personal capacity. The council employs staff; approves rates, policies and programs; approves funding; approves short and long term contracts; approves capital projects; approve annual budgets, audits and legal actions; oversees an annual budget of $ 334 million; and manages assets valued at $ 1.2 billion.
Abell also informed the board that the IMEA credit rating has been upgraded from A + to A ++ by Fitch Ratings.
“The IMEA has structured itself to repay its debt before the closure of Prairie State, which means that after several years of operation where there is no debt to this plant, the IMEA will be able to profit the lower cost of electricity. Whatever they profit, the City of Metropolis benefits, ”said Abell.
The Metropolis Fire Department will request closer assistance for work on its trucks.
The council accepted the Motorized Equipment and Emergency Apparatus Service Agreement for the maintenance of the City of Paducah fleet for the department.
Metropolis Department of Public Safety Director Harry Masse told council he had been contacted by the city of Paducah, which has mechanics and technicians trained in schools certified to work on fire trucks and other large fleet emergency devices. The service is offered at the expense of the City of Paducah to agencies in the region.
“They won’t charge us anything more than what they charge the town of Paducah for their own business,” Masse said, noting that the equipment currently needs to be transported at least 2.5 hours from Freeburg or the metropolitan area to work. to. “It’s local and these guys are certified – they specialize in emergency equipment”
In other cases
• After passing an ordinance amending Title III, Administration, Chapter 30, which clarified the language on who manages the city’s sexual harassment investigations, approved the appointment by Mayor Don Canada of Trevor Williams to the post of official ethics for the city of Metropolis
• Approved the hiring of a firefighter to replace an upcoming vacant position. Masse noted that the person can take on-the-job training until a class opening is available in March 2022.
• Appointed Mike Korte for a one-year term with the Police & Fire Commission
• Appointed Mike Moorman for a two-year term with the Police & Fire Commission
• And, approved the schedule of regular board meetings 2022
The next regular council meeting will be on Monday, November 8 at 7 p.m.
City offices will also be closed Thursday, November 11 for Veterans Day and November 25-26 for Thanksgiving.
Upcoming Metropolis events include
• Candy hours will be 5 to 8 p.m. on Saturday, October 30, as Halloween is a Sunday this year. Trunk-or-treating will take place at the same time at Fort Massac State Park.
• An income-based mobile food distribution will take place on Friday November 12 at Dorothy Miller Park. Distribution will begin at 10 a.m. Income guidelines range from $ 23,800 for a one-person household to $ 44,850 for an eight-person household. There will be 150 boxes available. The event is sponsored by Tri-State Food Bank, a member of Feeding America.
• Bulldog will be organizing a tire recycling day for Metropolis residents only on Saturday, November 13, 8 am to 2 pm on Girard Street across from the Baymont. Only passenger car and truck tires, on or off the rim, will be accepted; there is no limit on the number of tires. Commercial tire companies are not eligible, nor are tires for large trucks, semi-trailers, semi-trailers, agriculture or other equipment. For more information, contact Bulldog Services at 877-285-3479 or the Mayor’s office at 618-524-4016.
• The last Bulldog cleanup week in 2021 for the city cleanup will take place from November 15th to 19th. For more information, contact Bulldog at 877-285-3479 or the Mayor’s office at 618-524-4016.