Longmont electric, sewer rates expected to increase

LONGMONT — Longmont Power & Communications and the city’s Public Works & Natural Resources division are undertaking a rate study this year that is expected to result in the recommendation of higher electricity and sewer costs.

“Both of these utilities are facing some difficult and unique challenges,” deputy city manager Dale Rademacher told Longmont officials during a City Council work session Tuesday. 

Current revenues are “not sufficient to maintain the integrity of the system,” he said.

While staff has yet to determine exactly how much the rates should change — that’s the purpose of the rate study underway — Rademacher said it’s fairly certain that they will need to be raised. 

Rademacher said he expects the study to focus on “fairly short-term rate adjustment” to provide sufficient funding while also allowing for flexibility to meet the city’s goal of achieving 100%  renewable power by 2030.

The goals of the study are to ensure that rates:

  • Collect sufficient revenue to operate and maintain the utilities.
  • Recover the cost of service from each rate class.
  • Are affordable.
  • Are easily understood by the public.
  • Fund and encourage conservation efforts by customers.
  • Smooth increases over time to the extent feasible.
  • Achieve council and community goals. 

Tuesday’s session was spent exploring the operating expenses of Longmont’s nonprofit municipal utility. Staff will return this month to inform city leaders on power and sewer capital expenditures. 

© 2021 BizWest Media LLC

LONGMONT — Longmont Power & Communications and the city’s Public Works & Natural Resources division are undertaking a rate study this year that is expected to result in the recommendation of higher electricity and sewer costs.

“Both of these utilities are facing some difficult and unique challenges,” deputy city manager Dale Rademacher told Longmont officials during a City Council work session Tuesday. 

Current revenues are “not sufficient to maintain the integrity of the system,” he said.

While staff has yet to determine exactly how much the rates should change — that’s the purpose of the rate study underway — Rademacher said it’s fairly certain that they will need to be raised. 

Rademacher said he expects the study to focus on “fairly short-term rate adjustment” to provide sufficient funding while also allowing for flexibility to meet the city’s goal of achieving 100%  renewable power by 2030.

The goals of the study are to ensure that rates:

  • Collect sufficient revenue to operate and maintain the utilities.
  • Recover the cost of service from each rate class.
  • Are affordable.
  • Are easily understood by the public.
  • Fund and encourage conservation efforts by customers.
  • Smooth increases over time to the extent feasible.
  • Achieve council and community goals. 

Tuesday’s session was spent exploring the operating expenses of Longmont’s nonprofit municipal utility. Staff will return this month to inform city leaders on power and sewer capital expenditures. 

© 2021 BizWest Media LLC