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Fall will see a few changes for the Utility Department in Eagle Mountain City. A new commercial electric utility rate was voted into the consolidated fee schedule by the City Council on Aug. 5.
Mayor Heather Jackson also announced that the city is working on an equalized utility billing system for residents. Those who have lived in Eagle Mountain for one year or more will be able to apply for the special program.
The new commercial electric rate has a higher base rate, a demand charge and a lower charge per kilowatt-hour than the residential rate.
Energy Director Adam Ferre said in his presentation to the city council that as businesses investigate the city they are sometimes deterred by the lack of a commercial utility rate.
"The new rate was triggered by requests made by potential commercial users," said Ifo Pili, economic development analyst for Eagle Mountain.
With the interest from commercial development increasing the city researched a plan for a new utility rate.
"We looked at this commercial rate and we have found it to be one of the most competitive rates out there," said Ferre.
Though residents will continue to pay 9 cents per kilowatt hour compared to the lower 6.5 cents per hour for commercial, the larger base rate and the demand charge for spikes in usage will cover costs for business usage ensuring that residents are never subsidizing the business rate.
Businesses that use 3-phase power qualify for the rate, including commercial offices, doctors and dental offices, restaurants, and gas stations. The only businesses not included at this time, said Ferre, are "institutional and industrial" businesses.
City Administrator John Hendrickson added that a possible negotiated rate for industrial businesses is under discussion.
Dr. Bart Gardiner, a dentist in Eagle Mountain, said that he would be tracking his usage and his bills to see if the new rate would benefit his business. He will also be looking into the equalized residential billing in the next few months.
"I have to track it for a couple of months to see if it will make a difference," said Gardiner.
The city has been tracking the usage of businesses with meters already in place and used the data to determine the commercial rate.
"It will be constantly monitored," said Ferre.
Demand charges for peak usage will help manage the city's total buying power for electricity.
Hendrickson said if companies will be wise in using slow start motors and other energy saving equipment than they will keep their demand charges down and help keep their utility rate low.
"By managing their peak usage it helps the city manage ours," he said. |
