Jasper Utilities: Electric Department addressing revenue issues

The Jasper Utility Service Board approved a contract with Umbaugh Associates to conduct a full cost of service study for the Electric Department.

Electric Commissioner Wayne Schuetter told the board a full study was needed as the electric department appears to be falling behind in its revenues as expenses continue to rise. The last time the study was completed for the Electric Department was in 2007.

Schuetter said the full study will provide the board with a clear picture of all the costs associated with the electric department operations; comparing fixed costs to billables.

The study will examine the electrical rate tracker, the impact of renewable energy being installed by residents, the three rate structures currently in place as well as other fees associated with the operation of the department.

The study will also examine the power plant and how it impacts the value of the department. Additionally, it will examine the impact if it is sold.

Board chairman Rick Stradtner pointed out that the power plant portion of the study was a fairly minimal part of the full contract.

Schuetter also added that some of the recent developments being explored and completed by the city — the Cultural Center, the Courthouse Square and The Parklands — will also impact the electric department. “With those projects, we are looking at close to a million dollars from the electric department being contributed,” Schuetter said. “If that happens, how will that impact our rates?”

Schuetter explained some recent legislature that crippled the city’s ability to expand services to new customers in the city limits has caused issues with the service costs. “If we are asked as an electrical utility to be part of a project that benefits the entire city, only a certain part of the city’s residents are going be paying for that through the utility,” he said. “I think for our ratepayers we have to be very cautious about what we agree to do. Our customer base is going to be limited so as we increase our expenses, those customers are going to be paying the largest factor of that.”

The board approved a contract with Umbaugh not to exceed $75,000 for them to complete the full cost of service study of the department.

The board also took the following actions:

• Heard the Electric Committee would like to table any decision on a contract with the Indiana Municipal Power Agency that would require the city to use them to purchase renewable energy. IMPA requested the city sign a contract as they seek to comply with the Public Utility Regulatory Policies Act of 1978 that requires them to purchase a certain amount of renewable energy. The city was concerned about the implications of allowing IMPA to represent them until the end of the purchase contract the city has with IMPA. That contract is in effect until April 21, 2042. The Electrical Committee decided to propose a five-year contract with automatic renewals unless otherwise specified by the city as the market continues to change. The city can also manage those purchases on their own, but it would incur the costs of doing so. They are waiting to hear back from IMPA before bringing the issue to the Utility Service Board for a decision.
• Approved the contract with Spectratech of Noblesville to continue relining manholes in 2016 for $240 a linear foot for an amount not to exceed $30,000.
• Approved a bid from Best for Le$$ of Jasper to paint the sludge handling facility at the wastewater plant for $15,250.
• Approved continuing service agreement with Automated Energies that has been in place since 2012. The company provides monitoring equipment behind the city’s services to large customers. The fees are passed to the customers that use the service.
• Approved the purchase of a turbidimeter from Hach of Colorado for an amount not to exceed $6,000. The current turbidimeter has been failing at the water treatment plant and as the river begins the process of turning over, it will need to be replaced as turbidity increases.
• Heard there was some interest in repurposing the powerplant but the electric committee was still interested in hearing suggestions from the community on what to do with it. Anyone with ideas can contact the Jasper Utilities Office.
• Approved vacating a public utility and drainage easement due to the floodplain in lots 79 and 80 in the Brookstone Estates III subdivision. There is a wastewater and water line near the lots.