Gering residents to see future electrical rate hike

Gering residents will see an increase in electrical costs, probably in the fiscal 2014-2015 year, to help satisfy declining revenues anticipated from one of the city's two wholesale power suppliers.

City Administrator Lane Danielzuk told the city council Monday night that MEAN( the Municipal Energy Association of Nebraska ) is anticipating a reduction of close to a million dollars in revenues from non-member sources in their fiscal year that ends in March of next year. Danielzuk says under MEAN's contract with the members in the energy pool, they have the ability to ask the communities for help in making up the lost money.

Danielzuk says in response there will be some type of electrical rate hike in the next fiscal year to cover Gering's share of costs for MEAN's deficit. Danielzuk says the increase could be as high as ten to twelve percent.

Danielzuk says the energy industry is "in turmoil" due to proposed regulations by the Obama administration impacting coal fired power plants and other similar energy sources.

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