Observations all along the line - Kimball & the Southern Panhandle First
Observations all along the line - Kimball & the Southern Panhandle First
Local Rate Hikes In The Double Digits
Kimball Board of Public Works Chairman Jim Cederburg sat to discuss electric rates with the Observer. The five-member board has struggled with consistency as only one member has been on the board for more than two years, although some were members previously.
The board serves at the discretion and appointment of the mayor, with the approval of the City Council for a four-year term. With the appointment of Greg Robinson to the council the Board of Public Works is looking to fill his seat.
Shocking and concerning for the board was the 2023-24 audit, which showed a loss of $844,412 for all utilities. As a result of the loss, the debt service on city bonds is affected.
The board has always worked hard to keep rates lower, according to Cederburg, but inflationary tends forced expenses to keep climbing and the income was not keeping up with expenses.
Cederburg pointed out that after a long period of stability, the electric rates saw a significant 10% increase in 2023. This was followed by another 2.1% increase at the last Board of Public Works meeting, aimed at mitigating the losses. For the average electric bill, this latest raise translates to an additional $ 1.25 per month for residential customers.
Meanwhile, the local increases are a result of the Western Area Power Administration (WAPA) 8.8% rate increase last January and another raise coming.
Local customers need to be prepared, as Cederburg said that as of January 2026, the city would experience another rate increase of 8.2% from WAPA.
WAPA is raising rates to offset its increasing costs.
Cederburg said that in 2023 and 2024, electric meters were upgraded and he feels that upgrade went pretty well. In addition, a service company works at night to detect hot spots in the city lines, and he said the intention is to “fix it before it breaks.”
Every year, WAPA markets and delivers more than 25,000 gigawatt-hours of cost-based hydropower from power plants at 57 federal dams to rural electric cooperatives, municipalities, public utility districts, Federal and state agencies, Native American tribes, and irrigation districts.