By COLE REIF
Great Bend Post
Citizens concerned about utility rates is common. The concern is no different in Hoisington. The difference in Hoisington is that the city purchases wholesale electric power from Western Electric and then distributes the power to their residents.
With concerns on the electric rates, the Hoisington City Council approved a rate study. Based on that study, Hoisington will rebase the electric rate, or change customers’ power cost adjustment (PCA).
Hoisington City Manager Jonathan Mitchell said the change will save customers approximately $1 million over the next five years.
"That's real money," said Mitchell. "That's certainly something we think our residents will notice. That should be on the bill sent out at the end of January and hit your mailbox in early February. We're excited about that."
The electric bill consists of three parts…a meter charge, the base rate for usage and the PCA. Anytime the city has to pay more or less for power than budgeted for, the extra expense or the savings is passed on to the customer in the PCA.
Mitchell said two staff members operate the Municipal Power Plant in Hoisington and both worked to install a new engine at the plant.
"Our two staff members have done a lot of that work on their own," said Mitchell. "The benefit of that is it saves us money, but it also helps them when we have maintenance issues come up, they know how to fix it. Because of their work, the City of Hoisington is able to get that new engine installed for a third of the cost."
The City of Hoisington generates electricity to approximately 1,600 customers.