YOUR BUSINESS AUTHORITY
Springfield, MO
YOUR BUSINESS AUTHORITY
Springfield, MO
Severe winter weather and supply issues resulted in City Utilities of Springfield spending roughly $40 million on unplanned natural gas fuel purchases, officials say.
Now, the public utility is addressing how the fuel costs – paid through its operational contingency fund – will be recouped, according to a news release.
CU's Board of Public Utilities on Thursday approved two policy variances that are slated to go to Springfield City Council for a first reading on March 8.
The board is asking council to approve one variance that would allow CU to bill customers over a two-year period to cover the additional costs of natural gas, rather than putting all the costs upfront, according to the release. On monthly bills, the provision would appear as an increase of $3 when natural gas is used under a certain amount and roughly $27 during higher-use months.
The second variance calls for modifications to CU's natural gas curtailment rate. Under the proposed change, high-use commercial and industrial customers would pay 1.5 times the usual rate as opposed to the 10-times market cost typically required during an ordered curtailment period.
“We know our community is hearing of devastating bills in other states and is worried that similar issues will happen here,” GU General Manager Gary Gibson said in the release. "It is during the past few weeks that the value, and safety, of having a 'hometown' public utility was evident as our community weathered this storm and helps reduce the impacts that many others are facing.
“We are working with other agencies to investigate the cost escalations and suggestions of price-gouging so we can recover any funds due to our customers.”
Springfield Business Journal previously reported suppliers to CU increased prices on natural gas during the weather event to almost $400 per dekatherm from $3 per dekatherm.
CU last week asked customers to curtail their use of electricity as natural gas shortages were reported across multiple states, and several rolling blackout notices were issued. According to the CU release yesterday, customer usage during the severe weather period went up by an average of 30%-40%.
Fuel cost adjustments would not be reflected until April utility bills, pending council approval, officials say.
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I understand needing to recoup expenses for such a event. But my concern relates to how this is balanced among customers. I am one of those that turned my thermostat down, left lights off, felt like I was freezing in my own home. Should I have to be responsible for those that disregarded the calls for people to be more electricity & fuel conservative and turned the heat up? I doubt you have considered this or even have mechanisms for this. If it is the case that we all pay the same it will make many people less likely to be better stewards of our energy in the next emergency.