Electrical rate increase approved

Tuesday, August 26, 2014

scottw@standard-democrat.com

SIKESTON -- An increase in electrical rates and a new restriction on mobile homes being brought into or moved to another location in the city are now official.

Council members approved the two ordinances after second readings during their monthly briefing session Monday.

The electrical rate increase approved by the Council is necessary due to the electrical system not meeting required debt service coverage for fiscal year 2014; the uncertain future of the wholesale power market; and the Sikeston Board of Municipal Utilities receiving a negative outlook from the Fitch Rating Service, according to the request presented by Ed Throop, BMU's executive director, during previous Council meetings.

"Everybody pretty much knows what this is about," Mayor Jerry Pullen said.

The total increase of 14.3 percent on residential users, which is expected to generate approximately $2.5 million in additional revenue for BMU, will go into effect in two stages.

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