Two groups — representing big and small businesses — are opposing Lincoln Electric System's proposed 5.5 percent rate hike.
ALGIS J. LAUKAITIS / Lincoln Journal Star | Posted: Tuesday, January 29, 2008 6:00 pm
Two groups — representing big and small businesses — are opposing Lincoln Electric System’s proposed 5.5 percent rate hike.
The Lincoln Employers Coalition and the Lincoln Independent Business Association want the city-owned utility to reduce the hike by 1 percent and 1.5 percent, respectively.
“We support a strong LES with reasonable increases,” coalition chairman Bob Caldwell said. “We are supporting about 90 percent of what they want in this increase.”
Caldwell said the coalition is made up of about 22 of Lincoln’s largest employers, including Linweld, Goodyear and Nebco.
About two years ago, the group successfully challenged a proposed energy surcharge, he said, and has since worked with LES to keep the utility “strong” and power costs low.
The LES Administrative Board has approved the 5.5 percent increase but the City Council must give the final OK.
Both business groups say they plan to testify at the council’s 1:30 p.m. public hearing Monday.
LES says it needs the increase to cover increased power generation, transmission and coal transportation costs; replenish its rate stabilization fund; and finance a new sustainable energy program.
In a prepared statement, the utility said discussion of a rate increase was included in its budget 2008 preparations last year. Details were distributed to customers in their December bills and presented at a public hearing on Jan. 8.
The coalition, which is pushing for a 4.5 percent increase, said LES could reduce its rate increase by dropping plans for its sustainable energy program. LES plan to use 0.5 percent of the increase to generate $1 million to fund the program.
The coalition does support a voluntary checkoff allowing customers to donate a half-percent to the program, Caldwell said.
It also believes LES spends too much on administration, advertising and litigation. Caldwell said some of that money, along with money from capital improvement projects, could go into the rate stabilization fund, which has a balance of $2.4 million.
The Wachiska Audubon chapter supports the sustainable energy program and is asking membership to contact the council or testify at the public hearing.
“Saving energy is a good thing in itself. Making things that use electricity more efficient is also the cheapest and fastest way to curb pollution from global warming or climate change,” Arlys Reitan told chapter members in an e-mail.
LIBA executive director Coby Mach said his group also advocates a voluntary checkoff to fund the sustainable energy program.
Said Mach: “LES is telling us that this is important to people in our community. If it is that important, we feel that people will voluntarily contribute to it.”
LIBA wants LES to adopt a 4 percent rate hike, suggesting the utility take about $4.5 million earmarked for a future methane gas extraction facility and put those dollars into the rate stabilization fund.
Said Mach: “If you feel the rate stabilization fund is that imperative, move some dollars around rather than taxing the citizens of Lincoln for your savings account.”
Reach Algis J. Laukaitis at 402-473-7243 or alaukaitis@journalstar.com.