Jasper Utility Service Board warns of heavy hitting heating bills

The Jasper Utility Service Board is warning customers to be prepared for spikes in their utility bills in February and March.

Water and Gas Manager Ernie Hinkle pointed out that the harsh winter is reported to have had a nearly $50 billion negative impact on the national economy.

“Of the past 48 days we have had 19 days that the high temp didn’t get above 32 degrees. Nineteen days of temps in the teens. Nine days with the temps in the single digits,” Hinkle said. “One night with the low temperature at zero and two nights with the low temperature at negative five. It’s been cold. It’s been real cold.”

According to Hinkle the cold weather has affected the gas usage for the city. The city purchased 92,088 cubic feet of natural gas in November; 133,723 cubic feet in December; and 191,835 cubic feet in January.

“It is has gone up nearly 40 percent,” Bud Hauersperger, “The cost for the city to purchase the gas has increased 55 percent.”

According to Hauersperger, the January cost compared to January 2013 is up 64 percent.The increase is based on the higher amounts purchased and the increase in gas prices.

“We just wanted to make local citizens aware,” Hauersperger said. “Be aware that when you open your gas bill this month and probably next month, it is going to be substantially higher than previous months or previous years.”

The gas utility doesn’t make a profit on the gas sold to customers; it is sold at cost.

Electrical usage is up 11 percent but Electrical Utility Manager Jerry Schitter said this doesn’t mean customers will see an 11 percent increase in their bills.

“Don’t get the perception that the electric bills will only be 11 percent higher. If you heat with electric you could see substantially higher bills as well,” he said. [hr]

-Approved the low bid from Stac Material Handling for $19,090.00 for materials.

-Took two bids under advisement for 12 computers for the Utility Business Office. One from Eck Mundy for $15,697.00 and the other from Matrix Integration for $20,135.84.

-Denied a request from Jerry Hilgeford, of 401 E. 36th Street, to consider a reduction in the gas hook up cost of $3,610. Hilgeford had 231 feet of gas line installed to add the service to his home but stated he never would have agreed to install gas to the home if he had known the cost would be so high. He stated he should have received an estimate for the installation. Gas Manager Hinkle pointed out that the estimate is always available at the request of the resident and Hilgeford did not request one from the city.

Utility Service Board Chairman Wayne Schuetter stated the board is bound by ordinance to require Hilgeford to pay for the installation so they do not have to pass the cost of installation on to the rate payers.

-Heard that the Indiana Municipal Power Agency has withdrawn from the Energizing Indiana program and will be offering a revised program for commercial and industrial customers in Jasper. A program for residential customers is not available yet. The program is outlined on the IMPA website here. Dan Worl told the board that IMPA felt that the Energize Indiana program would actually lead to increased usage over the long term and therefore the agency pulled out of the program.

-Heard that the Electrical Utility Commission was still working on the rate study. H.J. Umbaugh and Associates will meet with the commission before the next utility service board meeting to provide more information as the city considers increasing electric rates. At this point the commission has heard a recommendation from Umbaugh to increase rates 5 to 8 percent. 

-Heard the Third Avenue Water Main project is about 75 to 80 percent complete. Over 6,000 feet of main has been installed. The first 3,500 feet has been pressurized, tested, and is in service. Infrastructure has worked really well with the Water Utility.

-Approved a request from Bob and Linda Wehr, who live along 100 South, to tap into a 12-inch water main about 470 feet from their residence. Bob came to the city to request tapping in to the line due to the well water at his residence being contaminated with lead. Bob has been undergoing chelation therapy for five years to remove the lead from his body but has had little success. Water Superintendent Hinkle requested the board approve Wehr’s request to tap in to the line at his own expense understanding he would have to procur the required easements for the line. The city will install a meter at the connection.