Council Approves Electric Rate Increase

Council Approves Electric Rate Increase
Posted on 10/28/2020
Following a public hearing during the regularly scheduled City Council meeting on October 27, 2020, Fountain's City Council adopted a new rate schedule, effective January 1, 2021. 

The City of Fountain Electric Department recently acquired JK Energy Consulting, LLC, an independent energy consulting firm, to perform a cost-of-service analysis and identify any variances in rate classes.  As a not-for-profit electric utility, rates are established to cover the actual cost of providing service to customers. The study considered several factors, including, but not limited to: wholesale power supply costs; the expense associated with providing service to each rate class; and capital improvement projects. 

The result of the study revealed a four-percent shortfall in revenues across all rate classes. 

The new rates will take effect on January 1, 2021 and be reflected on bills received beginning the month of February. The average residential customer using 700 kilowatt hours of energy will experience a $3.25 increase in their monthly bill.