Study of Sidney electric rates moves forward

A comprehensive rate review of Sidney's electric utility is moving forward.

At a Sidney City Council meeting in November, Andrew Ross, of the Nebraska Municipal Power Pool, presented an overview of the public utility's current financial status and projected future growth.

Ross returned to a council meeting this week, seeking direction.

The rate review examines the utility's current revenue and expense sources, as well as estimating what those numbers could be in coming years. The review will be used to help determine future rate increases.

At this point, Ross said, the question is how much money should be collected. Next, the "how" will be examined, he said.

To continue with the review, Ross asked councilors what rate of growth should be used in the calculations.

From a financial perspective, it's better to error toward not expecting growth and receive it, he said, but from an engineering stance, it's best to error toward expecting higher growth so that the capital and infrastructure is in place.

He provided a historical analysis of demand and energy consumption, based on 2-, 3-, 5-, 10- and 15-year average load growth.

"I think the 5-year average isn't going too far back, but at the same time isn't just looking at the last couple years," Ross explained.

The 5-year average demand growth is 1.36 percent.

"That gives you bookends to use when looking at growth," he said. "Zero would be conservative, 1.4 is kind of by-the-book looking at historical load and 3.5 would be anticipating some increase in activity and growth.

Councilor Wendall Gaston said projecting growth at 1.4 percent seemed fair.

"I think 1.4 would be fair, and then look again in six months," he said.

The council voted unanimously for Ross to continue the study, using an expected growth of 1.4 percent.

Electric rates are historically adjusted in September, as the city completes an annual budget, and is implemented in January.

Last month, mayor Mark Nienheuser said any potential raise in rates will be postponed until the rate study is completed.

"The good news, I don't think we're going to see a large increase in comparison to what our rate increase has been from our power provider," he said. "We're going to be able to absorb some of that – how much, we're going to determine in the coming weeks."

Also at the meeting:

• City Councilors unanimously passed a resolution reccomening the Nebraska Liquor Control Commission approve a liquor license to Applebee's Neighborhood Grill & Bar. Representatives from the company were at the meeting and said capacity at the restaurant, including the banquet room, is 233. A ribbon cutting for Applebee's is scheduled for Monday, Feb. 8 at 10 a.m.

• While the Fort Sidney Road bridge reopened to vehicle traffic last month, Gaston asked a representative from the engineering firm that worked on the project about construction delays.

Don Dye, of M.C. Schaff & Associates, Inc., said while the initial plan was to complete to Fort Sidney Road bridge before the nearby Pole Creek Crossing bridge, the order was switched after a fiber optic line was discovered where a piling was supposed to be placed.

The line wasn't located until construction began, and its owner – Zayo Group – didn't relocate the line until late August, he added.

Zayo Group has a right-of-way agreement for the line, and it provides substantial service to the southern section of Sidney, Dye said.

"It was a slow process," he remarked.

• Kelcey Pettit was appointed to the city's tree board. Parks Department Superintendent Tom Von Seggern said Pettit has been a Sidney resident since 1992 and would be an asset to the tree board.

• Von Seggern said construction is continuing at the new aquatic center. The roof is on the mechanical room and piping is being placed. Trusses for the bathhouse were placed this week and work is underway on the decking around the lap and leisure pools.

Councilor Roger Gallaway asked how the new facility would affect staffing levels.

Von Seggern said the aquatic center will likely require 10 staff members, up from eight at the former pool.

"And we're looking for lifeguards who can stay past the start of school," he said.

• The next Sidney City Council meeting is scheduled for 7:15 p.m. on Tuesday, Jan. 26 at city hall.