Utility bills could be smaller next year, even in the dog days of summer.

Wednesday, August 11, 1999

Utility bills could be smaller next year, even in the dog days of summer.

"Could" is the key word, because first it will take a yes vote from all 18 member cities in the SMMPA (Southern Minnesota Municipal Power Agency) association in favor of a new two-tiered rate structure. Currently Rochester, which uses 40 percent of SMMPA’s power, has indicated that they won’t vote in favor of the new rate.

If that happens, the Austin City Council’s and Austin Utilities Board’s Tuesday vote to amend the contract with SMMPA will be null and void.

"If Rochester doesn’t sign, we’ll have to address the issue again," Austin Utilities Board President Ken Regner said. "I believe that we do this together or we don’t do it at all – that’s why I asked to put those contingencies (stating that the vote had to be unanimous) in the resolution."

Now, Austin Utilities buys all its power from SMMPA at a specific rate.

The proposed two-tiered rate structure would set a cap on the demand, then, for a different price Austin Utilities would contract for SMMPA to purchase power needed above that set peak. Under the current arrangement, going over peak ultimately increases Austin’s cost for the entire next year.

Already this year, the Austin community has exceeded its peak, and SMMPA has had to go out on the open market and purchase power, which is generally very costly.