David Jenkins: High BMU bills a tough situation for all involved

Anger. Shock. Dismay.

All those words can be used to describe the large crowd that attended Monday’s Sikeston City Council, angry about their January Sikeston BMU bills. And their anger is understandable.

For years, Sikeston BMU residents enjoyed some of the lowest electric bills in the state. Those associated with BMU would boast the low prices and brag on how the rates hadn’t went up in years and years.

Then the landscape changed. Coal became much harder to come by as EPA restrictions increased along with a myriad of other issues. The low rates residents were used to seeing were forced to increase.

Since June of 2018 BMU residents have seen four increases to their electric rates. The first was in June of 2018, a 10.9% increase. Then in October of 2018 electric rates went up 8% again, followed by an 8% increase in October of 2019 and an 8% increase in 2020. That’s over a 34% increase in just electric rates in under three years and does not include water and sewer increases that have also been inacted.

City and BMU officials are quick to tell residents that Sikeston’s electric rates are lower than both SEMO Electric and Ameren UE and that may be true, but officials miss the point.

When people are on a fixed income or who are going check-to-check are used to paying $5 for something and then are forced to pay $25 for something, it is a shock. It doesn’t matter that someone else in another town is paying more, what matters is what you have budgeted and are conditioned to paying.

While saying Sikeston’s electric rates are low is great for those looking to relocate to Sikeston, for those already living here, the 34% increase in less than three years is significant. Most people have not seen a small increase in their salaries in that time, let alone a 34% increase.

With that said, it should come as no shock to residents. The increases were widely reported. I wrote multiple stories about the proposed increases and stories when the increases were passed (don’t ever say there isn’t anything in the newspaper) while the city also posted the information on social media.

On the flip side, BMU did not establish the increases for fun. Without getting into too much detail, the increases were much needed to keep reliable electricity and to not go into default with bond holders.

Those thinking that BMU hasn’t tried to do other things to cut costs aren’t informed. Many things have been done to help defer the costs from residents such as coal costs have been reduced, employees haven’t been replaced and applying compliance solutions that has saved millions.

Unfortunately the current BMU Board and staff are taking the full force of decisions made years ago to not raise rates for over 20 years. Instead of giving residents small, affordable rate increases over the years, it has been thrust on residents in a short amount of time.

Those who made those decisions in the past didn’t see the issues that were to come up years and years in the future. They were doing what they felt was right for the citizens at the time.

No matter whose fault it is or was, where we sit now is many residents unhappy with their electric bills and no recourse in sight. Many feel new meters that were installed last year are to blame and maybe the readings are off. There are lawsuits over similar meters in other communities so an outside source taking a look at them may be a good idea.

Maybe an outside source making an audit of BMU in general would appease people as well. If residents knew how the money is dispersed within BMU would help residents understand or maybe there would be additional ways found that BMU could save money and in turn, save residents from additional increases in the future. Transparency is never a bad thing.

I for one don’t have all the answers but there are many residents suddenly paying attention and asking for answers. The light is shining brightly on BMU and those who make decisions. Leadership is needed now more than ever because in the way things have been trending in the last decade, another increase will likely be needed sooner rather than later. And the anger from residents might just boil over if that happens.