Rates to increase at CP&L

Carbon Power and Light (CP&L) finished its Cost of Service (COS) Study, which showed the need for an overall increase in rates of 5.21 percent.

General manager of Carbon Power and Light Chuck Larsen in a press release said about 3.61 percent of the rate increase will be allocated accordingly to each of Carbon Power and Light’s rate classes.

“Each of Carbon’s rate classes will experience a different percentage of increase based on that rate classes’ respective impact on Carbon’s operational revenue requirements determined in the COS,” Larsen said.

According to the press release, CP&L did increase rates to address its own rising operational costs since 2009.

“Over that time, we have experienced increases in every aspect of our operation,” Larsen said.

For example, the cost of a 40-foot power pole increased 34 percent.

According to the release, under general service, single phase facility charges will increase from $24 to $27 a month. The three phase facility charge will increase from $32 to $35 a month. The kilowatt-hour charge will increase from about 10 cents per kwh to about 11 cents per kwh.

Larsen said CP&L identified the need to increase rates in 2012, but was faced with a significant change in how its power supplier Tri-State billed for wholesale power, delaying a rate increase.

“Because of this change in the wholesale rate structure and the fact we had no history or experience with this new rate, a decision was made to delay the aforementioned rate increase until which time we had actual data associated wit the new wholesale power component of our rates,” Larsen said.