Springfield City Council held a public hearing Tuesday night on the 2024 budget for City Utilities. It’s expected to include some $633 million in revenues. City Council members including Mayor Ken McClure praised CU's increasing adoption of renewable energy sources. They now make up roughly 40 percent of CU’s electricity. A decade ago, renewables were less than 10 percent.
But electricity in the Springfield area is expected to get more expensive, if Council votes to approve a new rate schedule later this month. It was already approved by the CU board last month.
CU’s electric rate plan calls for three years of gradual increases beginning next spring:
- 4.8 percent in 2024
- 4 percent in 2025
- 3.9 percent in 2026
The increases would bring in $39 million dollars in new revenues.
"Inflation is the primary driver," says Austin Beshears, who oversees rates and fuels for City Utilities.
CU last rolled out electric rate increases from 2013 to 2016. Since then, inflation has risen 26 percent.
Beshears adds, “We are focusing on continuing to invest in infrastructure and some very large capital projects.”
For example, CU says that from now through 2028, it will need to spend $40 million dollars on replacing power poles and cutting tree limbs and other vegetation that affects the grid.
Council is expected to vote on adopting CU’s proposed budget and the proposed electric rate increase on September 18.
