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  2. Jackson Proposes Rate Reduction to All Electric Customers

    The engineering firm of 1898 & Co., a part of Burns & McDonnell Engineering Company, Inc., was hired to conduct an assessment of the City of Jackson’s ability to provide an immediate reduction to retail electric rates in July of 2020.

    Based on the firm’s preliminary assessment of the City’s forecasted electric utility costs as provided to them by the Missouri Public Utility Alliance (MPUA), the City’s power supplier, power supply costs are expected to reduce by approximately 10% beginning in July of 2021.  On an annualized basis this translates to $1.2 million per year in cost reduction.

    Without any rate reductions, the City will continue to build reserve levels beyond its target balance requirement.  The City and 1898 & Co. have determined that an immediate rate revenue reduction is financially feasible and advisable.

    While the power cost reduction will not be implemented until July 2021, the City can afford to implement a proposed mid-year rate revenue reduction in July 2020 to provide some early rate relief to customers.  Implementing a total rate revenue reduction of 11.5% will reduce revenues by $1.0 million in 2020 and $2.0 million in 2021.  The rate revenue reduction ranges from 10% to 15% across the five classifications of users (residential, small general, large general, industrial, and heavy industrial), as defined in the City Code.

    1898 & Co. conducted a regional comparison of rates and found that Jackson’s existing electric rates are higher than many of its peers.  The proposed rate reductions show how Jackson will be more competitive in the future and provide rates that are amongst the lowest in the region.

    Jackson is one of a small number of cities that operates its own electric utility.  The City’s Electric Utility was originally formed in 1905 and currently serves 7,367 metered customers.  Over its 11 square miles of service area, the City maintains 40 miles of transmission lines, 161 miles of overhead electric distribution lines, and 69 miles of underground distribution lines.  The Electric Department has 3,543 poles, 1,971 streetlights, and four substations.  The City’s generating facilities are capable of handling the City’s power load in case of emergencies.

    The City of Jackson Electric Department has also been recognized as one of only 240 public power utilities nationwide awarded a “Reliable Public Power Provider”.  The recognition is based on four key disciplines:  reliability, safety, workforce development, and system improvements.

    Approval of the reduced electric rates is expected at the next regular meeting of Mayor and Board of Aldermen on Monday, June 15th, following acceptance of the engineer’s Electric Utility Rate Study Update.

    “The Board of Aldermen and I are pleased we can act quickly to help residents, businesses, industries, and schools during this difficult and continually evolving economic situation,” said Mayor Dwain Hahs.

    For questions or inquiries, please call the office of the City Administrator at (573) 243-3568, or inquire online at www.jacksonmo.org.  For more information and to stay up to date, visit us online at jacksonmo.org, or connect with us on Facebook.

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  4. City of Jackson
    101 Court Street
    Jackson, MO 63755  
    Phone:  (573) 243-3568  
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