Utility rates are expected to increase

By Don Bowen/Fremont Tribune
Monday, Jun 16, 2008 - 07:38:14 am CDT

Fremont residents can expect utility rates to increase next year.

"Right now, I would guess it would look like electricity and water that would increase," said Derril Marshall, Fremont Department of Utilities general manager. He added he doesn’t yet know exactly how much of an increase local residents can expect.

"We don’t have the budget done yet," Marshall said. "So, I don’t know what that increase will be."

But he said even though those are the only utility rates the city will likely increase, it won’t be the only increase utility customers will pay.

Fremont City Administrator Bob Hartwig said the two of them have been discussing the increases for a while.

"We need to get people used to the idea," Hartwig said.

The cost of natural gas is also increasing, Marshall said.

"People are aware what gasoline is doing, but what hasn’t gotten much publicity are the natural gas rates," he said. "Natural gas rates have been following crude oil prices. It doesn’t have to, but it has.

"We’re not planning to increase the natural gas rate schedule this year, but what we pay for natural gas is reflected in our customers’ utility bills. Right now, if you look at the estimates for natural gas for next winter, it’s 35 percent over last year."

With that, Marshall said there’s a message he wants to present.

"People need to plan for next winter. If you’ve been putting off projects to make your home more energy efficient, you need to look at that now and do whatever you can to help yourself cut down on utility bills."

Because the city buys natural gas from another source, there isn’t much the Department of Utilities staff can do about the cost that shows up on local residents’ utility bills, Marshall said.

"With natural gas, the local cost - the cost that we can control - is only about 12 percent. Most of the cost is what it costs us to buy gas."

Marshall said the natural gas part of the utility bill will hit harder.

Last winter, natural gas was about $8 per 1,000 cubic feet on average, he said. Based on the current market, the same amount of natural gas could cost at least $10.80.

Those dollar figures might not mean as much to a Fremont family as what that adds to their monthly bill, he said. Based on the average natural gas use from December 2007, Fremont residential utility customers can expect to pay on average $38 more during a similar month.

"That’s the natural gas portion," he said, adding the potential increases in electric and water bills won’t be nearly as dramatic.

But he said any specific amounts would be just a guess.

"If you take the typical electric bill for that same month - December last year, it was about $61. As an example, if the electric rates are increased by 6 percent, that would be $3.70. With that same 6 percent example, the average water rates would increase by 60 cents.

The increase in water rates is part of a multiple-year program to help pay for a new transmission main from the well field to the water plant on South Luther Road.

A few elements are driving the increase in electric rates.

"The No. 1 thing is the increase in fuel. With diesel rates going up, the costs to bring coal to town are going up," Marshall said. "Plus, the cost of coal is going up. The estimate for next year is that the cost of coal will go up 20 percent. For us, that’s $2 million. Other fuel costs are up. Parts for maintenance are higher. It’s really across the board.

"I think people just need to start planning for this," he continued. "The fuel situation, the energy situation is here."

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scoop
Jun 16, 2008 8:43 AM
There is only so much planning you can do. It boils down to gas to get to work and now higher heating bills.There is not much left over after rent.I am sure I am not alone when i say the whole economy is pretty darn discouraging.
J B
Jun 16, 2008 9:32 AM
Why can't we put in some electricity generating wind mills? I've been told, 'this isn't an optimum location.'

What about the days the wind does blow? Why not buy some property up on top of the valley north of town, and put them in there? The city owns a very large open field on Old 275 a few miles out of town. There could be several put in there.

There is one town in Missouri that gets all it's electricity from wind, and sells the excess to the power company. We could sell the excess to OPPD, or NPPD.

Why can't we have one or two generators like that? Lincoln has at least 2, even Valley has one, *IN THE VALLEY*. That thing is running everyday!

Why not put some solar panels up? The south and west side of the jail is a good location, on several roof-tops on the downtown buildings. There aren't any trees there. The dog food plant Natura could have panels, it's tall and un-obstructed. There are many options to look at, but raising the rates is easier for the city, and puts the burden on the backs of the working class.

Would Marv Hansen (building inspections and permits) even give anyone a permit for soloar or wind power since the city owns the DU and just keeps raising the rates? Could I have solar panels on the roof of my house? or would they make the permits so expensive that it wouldn't be worth my time?
My Cents
Jun 16, 2008 10:06 AM
I like how the "No. 1 thing is the increase in fuel. With diesel rates going up, . . ." Hello! What are all of those train cars doing I see loaded with coal. Oh, yeah, diesel trains. I think it really is the cost of gas for the utility workers to drive around in utility company trucks. Not that they do not need to drive to work sites, but how well are they making every trip count. Not that the gas is coming out of their pocket - it is picked up by the city tax payer.

HyVee stopped giving the 5 cents a bag discount for you bringing in your own bag - because of the cost of fuel. 5 cents! That is a total of 25 cents for me spending $100 on groceries to fill the 5 bags.

Guess I am at a point of "What-ever". I am a bigger person than HyVee coorporate office in that I will continue to do the right thing without their nickel. I get really frustrated when the costs for everything keeps going up to cover the cost of fuel prices and my paycheck does not. All of these corporates can cover their cost by passing the increase on and the consumer has no where to go to cover their loss.

Last winter I kept the thermostat in my home set at 62 degrees all winter. Wonder how low I can go this year.
Tex
Jun 16, 2008 10:56 AM
At some point you gotta realize people are tapped! Every utility company or agency says it's just a little increase, do you ever think about how it adds up for people who's income IS NOT going up????
T M
Jun 16, 2008 1:19 PM
I thought we added the extra generator facility (How much?$$$$) to increase our output of electricity. This was going to let us sell extra elec. to other utility companies (Like Omaha.) and keep 0ur rates from increasing for some time. Nice try I guess.
Allan Rowe
Jun 16, 2008 3:33 PM
just moved here from Lincoln last winter...utility rates in Fremont are CHEAP. No one wants an increase but check around and I think you will see we are pretty low here. Let's hope the increase is not that much so we are still LOW priced!!
J B
Jun 16, 2008 3:47 PM
Sunlight and wind are free!! Let's start looking into alternative sources of power to offset the rising cost of coal and diesel. There are no transport costs for wind and sun. Put some solar panels on the power plant building to help out. What about all that green area around the electrical generating plant? The water plant on south Luther Road? and the massive green area where the city's well's for water are located? Lets get smart about our own resources instead of always paying someone else for our power. Wind generators and solar are viable alternatives.

On another note, go to the drainage ditch sometime on the north side of 1st street across from the power plant, and look at how much water is being discharged to drain away. Why can't this water be re-used? or recycled somehow? It's just money down the drain, or down the river in this case. That's our money flowing away!!!
Common Sense
Jun 16, 2008 5:07 PM
I would rather receive a tax hike knowing that something is changing for the better in the future. Like putting up wind turbines... However all they are doing now is putting a band aid on a wound that won't stop bleeding. It's only going to get worse. Maybe we should put more money into the schools instead to make the students smarter so when they graduate they can help us solve our energy crisis.

Anyone see the new gas/hydro hybrid car called FCX Clarity? It only emits water as exhaust. However it needs hyrdrogen stations which aren't located anywhere around here thanks to big oil.
scoop
Jun 16, 2008 7:40 PM
Alan, were there a few jobs in Lincoln that paid more than 7.00 per hour?? We need a few jobs here .Of course, they will go to the younger folks and us too young for retirement-and too old to work two jobs still have to come up with money for gas and utilities and RENT..
bill
Jun 16, 2008 9:09 PM
If any of you people wanted to be serious about saving yourselves money, you would take advantage of wind and solar energy in your own homes.
My family made a concious effort to use the sunlight as our lighting when we could. We also make due with "wind power" to cool us down when the temps are reasonable.
I also played with the water heater for ages until i found a setting that had plenty of hot water 90% of the time. What happens that other 10% of the time? Oh, well hurry up. The only time this really matters is in the shower anyway.
These conservational efforts saved me 15-20% on my bill and they can for you to.
Another great idea which i don't utilize, is the level payment plan. I have friends who love it.
WE CANT CONTROL THE RATES, BUT WE CAN CONTROL OUR SELVES.
By the way, i think this world is headed right down the crapper too, but i do what i can to make the best of it. Try it.
shakes head
Jun 17, 2008 12:27 AM
get used to it people evrything is going up and NO ONE wants to go to the lengths of spending any money that would possibly help out the " average Joe" . Wind generators, solar panels, are all really good ideas but, no one in this town will ever make the conscious effort to go through with any of it. it cuts into to many peoples pockets, not to mention its too much work. If you want to do something then I think its up to all of us, to take care of ourselves for heavens sakes I say we hold a meeting and all chip in ourselves and get what we need to build our own wind generator and sell the excess to Fremont...why not charge them like they charge us.
grain of salt
Jun 17, 2008 6:48 AM
The per killowat price for "green" energy is way higher than using coal. The overload generator at the power plant runs on gas, which is also more expensive than coal. It won't be long and we will be purchasing excess power on the grid for this city. With the increased housing over the past few years, we are placing more demand on the existing generators. Other communities are forming cooperatives to build larger power plants, we have missed that boat and will become a purchaser of electric power instead of a seller.

When technology catches up or the price of coal brings the prices together then it might make sense to make the switch.

On the radio Iowa used to give the choice on their electric bill to pay more per kilowat hour to use "green" sources for power.
Nice
Jun 17, 2008 8:52 AM
I was just reading and yes they did put up that electric generator. It never has worked right and when it does it uses so much energy it isn't worth it. So glad the city of Fremont decided to build that horrible eyesore for a couple million dollars to save us nothing. I also agree with using natural power like solar panels and wind generators. Minnesota and Iowa seem to be okay with having wind farms to power their towns. This is really something to look into instead of waiting until the last minute when we have no other options.
Bobo
Jun 17, 2008 8:57 AM
J B:
Yes, why don't "WE" just build a wind farm? Because nothing is "free". That's why the town you speak of in Missouri needed massive tax credits to build their's.
While "WE" are at it, whey don't "WE" just build a nuclear power plant?
Coal is still the cheapest and most abundant energy in this country.
cutting costs
Jun 17, 2008 8:59 AM
With the Utility Department cutting most of the meter reading jobs in the near future thanks to automated meters, woudln't that help absorb some of their increased costs? They are getting rid of, not transferring to other departments, many of the folks, some of whom have worked for the DU for years, without any second thoughts. That means more people looking for comparable jobs, with comparable salaries and benefits, which there aren't many of in Fremont. Our business development leaders need to get on the ball and attract some companies to Fremont that pay better than minumum wage salaries with benefits.
I think we all need to face the fact that until this country truly crashes, not some economic downturn or mild recession, prices are going to continue to climb above the rate that incomes do. Be smart and save as much $$ wherever you can now because this isn't even close to the worst of it.
cmcb
Jun 17, 2008 10:51 AM
While I have experienced higher rates in other cities (Omaha and KC, specifically), I think that this issue points to the antiquated infrastructure that exists in our community.

If there is no way to circumvent the city from having to purchase natural gas supplies from other sources, there needs to be exploration into alternative methods - either expand or invest in alternative means of power. It will be a significant expense on the front end, but will pay for itself many times over in the end.
Ive got a Question
Jun 17, 2008 1:24 PM
How many of you out there complaining about this increase drive a gas guzzeling SUV? Anyone? Reduce your consumption of energy and you will eventually see prices decline. I agree that a wind turbine is a wonderful idea. Also, Taxes will go up a little if we have to build a turbine, but over the long run, it will benefit everyone in the area. I have family that lives in a town in Minnesota that is powered by the wind turbines and their tax increase was much less than the decrease in their power bills. Their investment has more than paid for itself. To me that is a no brainer. Not only the cost "issue" We need to think about the cost to the enviorment. If we keep treating this planet the way we are, there isn't going to be much left before long. I am going back to the old motto....

RE-USE REDUCE RECYCLE

Stan & Son's provides FREE recycling with their trash service. It is great. They even provide the container. If I remember right from my call to the "Other" trash company in town, they charge a fee to have recycling.

That's my two cents....
LSB
Jun 17, 2008 4:54 PM
To: Ive got a question.. True Stan and Sons does offer recycling, but their containers are small and uncovered. City ordinance requires all trash receptacles be covered. I have never known of the city to enforce this with the Stan & Sons containers, but they do become a nuisance when the papers blow out or the company doesn’t pick up until late in the afternoon during the rain and wind, or forgets to pick it up at all (which has happened to me). I do use Stan & Sons, they are cheaper than the other companies, but their service could use a little work.

I also agree that our city needs to invest and be proactive with energy. Just a few wind turbines could power our entire town. As for the infastructure, well we just lost out on a major company coming to our city because of our out-dated infrastructure.
I also agree that our city needs to invest and be proactive with energy. Just a few wind turbines could power our entire town. As for the infastructure, well we just lost out on a major company coming to our city because of our out-dated infrastructure.
responses
Jun 17, 2008 5:56 PM
Bill, you have good ideas for home owners but what about the people who live in apts and cant make those choices because they dont own the property? My landlord is cheap and wouldnt spend a dime if he didnt have to. As far as the person who asked about people who drive SUV's ... while I dont own one, I would like to say this, not everyone can afford to go out and buy a new car. We need to look to ourselves for help, but at the same time the government knows we are in an energy crisis, and all they do is talk about it. Talk is cheap, lets see some action.
scoop
Jun 18, 2008 10:54 AM
I live in an apartment and have done plenty of weatherizing. The level payment plan is great too.
do some research
Jun 18, 2008 11:32 AM
While wind power is very cheap (after it is built) you might want to look at what happens when the wind does not blow. If the blades are not turning there is no power produced! Hey and guess what when they don't produce power then you are right back where you started from. There is a reason that power companys spend millions of dollars to wind studies before they just build one. Also you might want to look into what the output is on each tower. Newer ones are usually around 1-1.5 megawatts. While wind and solar are very good for the enviornment they have their flaws. Until there is better technology it might be better to wait. It is pretty easy to talk big about something that many have no clue on the processes to make it happen.
Bobo
Jun 18, 2008 2:33 PM
To do some research:
Ahh, a voice of reason. Wind farms sound so "green" but amount to nothing more than a costly duplication of existing infrastructure that MIGHT be usable 50% of the time, usually less.
BTW, the turbine in Valley is just a prototype built by Valmont. Plus, I saw it not moving today as I passed Valley going 75 mph in my gas-guzzling pickup.
Speaking of speeding, people pass me all the time, and I usually go 10 over. Most have their little yellow "I support our troops" ribbons plastered on the back of their cars/SUV's. Is that a little ironic, or is it just me? You know, since the war really boils down to access to oil.
Its up to us
Jun 18, 2008 9:47 PM
Heres my 2 cents, I understand neither solar power nor wind generators are going to work all the time, but you can't tell me that a combination of both would not provide us plenty of power, and as far as gas guzzlers there are planty, the problem is everyone drives every where and refuses to walk god forbid we get any excerise. I mean I realize that there are people who have to drive to places close enough for the rest of us to walk due to disabilities and other factors, but the truth in the matter is we are so hurried in our lives thats its easier to hop in the car 1o minutes before being some where than to leave 15 or 30 minutes earlier to walk or ride a bike. I think everyone should watch the town of Greensburg, Kansas as they are rebuilding after a tornado to be completely green. If they can ake it work so can the rest of the world...But, theres one problem....that means people like Bush get less money lining the pockets so you can bet there will be road blocks to make that as hard and expensive as possible.