BARTON VILLAGE - At the beginning of Barton Village's annual meeting last Tuesday, independent energy consultant Patty Richards summarized the village trustee's proposed rate hike for Barton Electric Department (BED) customers.
Recently the trustees filed for an 18.27 percent increase in rates. Richards said BED has a $528,262 shortfall necessitating the need for an increase. The rate increase will be vetted by the Department of Public Service (DPS). Both parties will appear before the Public Utility Commission to argue their case for or against the proposed increase.
The major drivers of the increase are outlined by Richards. The contract with VPPSA costs $356,150 for line work, responding to power outages, meter reading, and new electric service and customer line work.
Lenders require BED to have two times the interest earning ratio in the bank, essentially cash reserves. There is already a $151,575 shortfall carried over from 2022. BED also requires an infusion of cash this year, bringing the net income requirement to $282,383.
Other miscellaneous electric costs will increase by $40,681 for hydro plant expenses, labor and fuel costs, bond payments, and other general costs.
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