Commissioners to discuss GRU fuel adjustment policy

Published: Sunday, June 23, 2013 at 6:53 p.m.
Last Modified: Sunday, June 23, 2013 at 6:53 p.m.

The City Commission's Regional Utilities Committee will discuss potential policy changes for the electric utility's fuel adjustment charge on customers Monday.

The committee's meeting begins at 5:30 p.m. in the multipurpose room at the GRU administration building, 301 S.E. Fourth Ave.

The fuel adjustment charge has been a hot-button issue for opponents of the biomass contract. The city has used the charge to collect over its actual fuel costs by nearly $24 million in order to build up a fund intended to limit rate increases associated with the plant.

A discussion of a consultant's cost allocation study is also scheduled. Completed last year, the study looked at how the annual costs of running the utility were paid by the different classes of customers -- residential, commercial and wholesale -- for electricity, water, wastewater and natural gas.

One conclusion was that commercial electric customers subsidize residential customers.

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