The Herald Bulletin

September 9, 2008

BOARD OF WORKS: Rate change in Oct. bills

By Aleasha Sandley

Although Anderson Municipal Light & Power received an order to increase its rate by 8.8 percent, customers will not see the increase on their bills until October.

Some customers receiving their September bills have had to pay more than usual, but that is because the city’s conversion to its new Munis software pushed back billing dates this month, said Board of Public Works Chairman Greg Graham said.

Many customers might be paying bills in September for 35-38 days of service instead of the usual 30, he said. In October, customers will pay for fewer days to make up for the delay, but also will see the effects of the rate change and tracking factor, which also has gone up for the quarter.

The tracking factor measures the cost to produce the energy, including cost of coal and transportation, Graham said.

Although the rate change was effective once approved by the Indiana Utility Regulatory Commission in late August, customers will not be charged the new rate on September bills because they are based on energy used in August, before the rate change took place.

“We wanted to make sure no one got billed prior to the order taking place,” Graham said.

The 8.8 percent increase is the first increase from Anderson Light & Power in five years, Graham said. The Board of Works filed for the increase in December before presenting it to the IURC for approval.