Utility plans 60 pct. increase in Cheyenne electricity rates

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Utility plans 60 pct. increase in Cheyenne electricity rates

CHEYENNE, Wyo. (AP) - Xcel Energy-Cheyenne Light, Fuel and Power filed an application with the Wyoming Public Service Commission to increase electricity rates by nearly 60 percent, company officials announced Thursday. "This price increase request reflects an unprecedented run-up in wholesale power costs that occurred near the end of 2000," Cheyenne Light President Rick Kaysen said. "The entire Western region has been affected by this market explosion."

The increase would be followed by an additional 11 percent hike in 2002, with the combined increase to continue for five years.

The hike would allow the utility to, in the remainder of 2001, recover $36 million of $60 million in increased costs from its wholesalers.

The Public Service Commission had earlier been told that the request was pending and scheduled hearings on the rate increase April 11-13.

The bill for monthly usage of 620 kilowatt hours of electricity, which is typical for residential customers, would be an extra $25 per month. Commercial customers, who average about 1,000 kilowatt hours, would pay $40 more per month.

"Xcel Energy fully understands the significant impact this level of an increase will have on the Cheyenne community," said David Sparby, vice president of government and regulatory affairs.

Kaysen said negotiations for a new electricity purchase agreement broke down when wholesale prices unexpectedly skyrocketed but rates would have increased anyway.

"We have taken steps to assure power costs will return to more normal levels in the future by locking in long-term supply contracts," he said. "But given today's market, 2001 costs will be dramatically higher."

Sparby said the company is attempting to offset the impact of the increase through a deferral plan, offering incentives to use less electricity and increasing support of low-income assistance programs.

http://www.trib.com/HOMENEWS/WYO/16RateHike.html

-- Martin Thompson (mthom1927@aol.com), March 16, 2001


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