CUBA CITY, Wis. -- The Wisconsin Public Service Commission has authorized a 3.33 percent increase in rates for the Cuba City Electric Utility, its first increase in six years.
The utility sought a slightly higher overall increase, which would have yielded an additional $59,299 in annual revenue. However, the PSC concluded that the utility required only $56,889 in additional revenue. The new rates will add about $3 to the $71 monthly bill of an average residential customer using 680 kilowatt hours.
The new rates will take effect on Wednesday, Oct. 14, and will show up on bills mailed to customers on Dec. 1, said Kathy Schultz, Cuba City's clerk/treasurer.
The utility needed additional revenue as six years of inflationary pressure on operations and maintenance costs eroded its net operating income to an estimated $15,547 this year. The new rates should yield a net operating income of $72,436.
The cost of wholesale power has increased 23 percent during the past four years and is expected to reach $1.3 million this year. That cost represents 77 percent of the utility's annual expenses. The utility has passed this cost on to consumers as the price of wholesale power increases, now these costs are incorporated into base rates approved by the PSC.
The PSC also authorized the utility to implement time-of-day rates for residential and small power customer classes, to give rate incentives for those who use power during off-peak hours.
