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CL-2525 New Business   Item #: A.       
Meeting Date: 04/20/2021  
Subject:    Consideration of Adjusting Utility Rates for Utility Customers
From: Jason Grey

COUNCIL ACTION
Business Meeting:     04/20/2021
SUMMARY
The 2021 biennial rate study was recommended by the Danville Utility Commission. Our rate consultant and City staff completed the study which would go into effect on July 1, 2021, if approved by the City Council.  Proposed adjustments include net decreases to electric and gas rates.  The recommended water and wastewater rate changes are being proposed with a neutral impact to customers. A cost of service study was completed to determine the rate structures for Fiscal Years 2022 and 2023, which will cover the cost of supply and the cost to maintain the utility infrastructure.  The average residential customer will see lower monthly utility bills as a result of these rate adjustments. For example, the average City customer who has water, sewer, electric, and gas will see about a $10 decrease in their monthly bill. The attached supporting documentation details the existing and proposed changes in utility rates.
BACKGROUND
The 2021 Biennial Utility Rate Study by Utility Financial Solutions, fully describes revenue requirements, proposed changes, and impacts of proposed changes on each customer class.  Fiscal Year 2022 adjustments are an effort to bring our rates to the cost of service.  Substantial improvements continue to be made to the utility infrastructure, and operational improvements are ongoing.  These combined efforts reflect our commitment to provide safe, reliable utility services at the lowest rates currently possible.
 
RECOMMENDATION
Staff recommends that the City Council adopt the accompanying Ordinance authorizing rate modifications to utility services.  The Danville Utility Commission supported these modifications during their budget review.

Attachments
Ordinance
Electric Rate Changes
Natural Gas Rate Changes
Water and Wastewater Rate Changes
Rate Adjustments


    

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