City of Independence, Missouri

Councilmember Huff proposes reduction in City electrical rate

Independence At-Large City Councilmember Mike Huff is proposing a resolution authorizing implementation of the 2015 Electric Cost of Service and Rate Design Report, which will reduce industrial and commercial customers’ electric utility rate by 2 percent. This is possible through a revision of the rate structure and is estimated to save these customers approximately $3 million in revenue.

This restructuring was presented in a 2015 report titled Electric Cost of Service and Rate Design Report by Sawvel and Associates, an outside consultant for the City’s Power and Light department. At that time, it was not acted upon by the City Council.

“The rate decrease I am proposing incorporates the Sawvel and Associates report and it is my belief that the City charter requires that the electric utility shall apply any and all annual surpluses to rate reductions,” Councilmember Huff said. “If this proposal is adopted by my Council colleagues, it will be the first time in decades, if in not the history of the City that the City Council has granted our rate payers a reduction in their utility rates.”

Under this proposal, it is anticipated there will be additional rate restructuring recommendations for all customers in the 2019-2020 Fiscal Year.

“I believe if this resolution is passed, there will be an immediate reduction in rates for our commercial customers and an additional reduction in forthcoming years for all of our customers,” Councilmember Huff said. “This will create confidence in our public utilities resulting in increased business locations in Independence and growth in our community.”

The resolution will be heard by the Public Utility Advisory Board on Thursday, Nov. 15, and the City Council on Monday, Nov. 19.