City Says Bond Has Long-Term Benefits
Jeremiah Stode is a new business owner in Columbia who realizes what electricity costs.
"Well, this month, it's running around $800 or so," he said.
Stode is keeping an eye on a proposed bond issue that would raise electric rates in the city.
"You know, our bill is probably going to, depending upon the size of the increase, you know, it could be substantially bigger."
Dan Dasho of the city's Water and Light Department said, "This is probably the largest bond issue that we've done for electric up until this point in time."
The bond issue is not about power generation; it's about how the city delivers power to its customers. One part of the bond issue deals with transmission lines that send massive amounts of electricity to substations that collect the current and send it to homes or businesses.
The city would use a 2% rate hike in the next three years to repay the bond.
That would cost the average user a little more than a dollar a month, or slightly more than $46 over three years.
Without the bond, Dasho said the city would raise rates 15% in one year, meaning a price hike of almost $10 a month or $117 for the year.
"I think you could ease into it a little bit better than a 15% spike, that would really hurt, you know, on the time," he said. "Especially this time of year when we're getting a lot more business, beds are running all the time, 15% could make a huge difference in our bill."