THATCHER — Starting July 1, Thatcher electric consumers can expect to pay a bit more.
During adoption of the preliminary 2022-23 budget Monday, the Thatcher Town Council agreed to raise electric rates by 10 percent starting July 1.
The town’s electric consultant suggested a 20 percent increase for the coming year, and possibly cutting rates by 15 percent the following years.
However, Councilman Ryan Rapier pushed for the lower rate hike initially, review the costs against revenue from the 10 percent rate hike after two or three months and, if costs remain high, enact a second 10 percent rate hike.
“That is easier to explain twice than trying to do, ‘Hey, we think it’s going to be really bad so we’re jacking the price up way up here,’ and then coming back a year later and saying, ‘Oh, it wasn’t that bad,’ and coming back (down),” Rapier said.
Town Manager Heath Brown explained that the reason for the rate hike is due to increased natural gas costs and a reduction in hydro-generated electricity.
He said without any rate increase, the town would have to use at least $700,000 from its reserves over the coming year. If the 10 percent rate hike is in effect the entire year, the town will use about $350,000 from its reserves.
Last year, the town used about $800,000 from its reserves rather than pass on costs to the consumer, to cover increased natural gas costs as a result of the power crisis in Texas, when a deep freeze shut down the state.
The town currently charges 8.6 cents per kilowatt hour. The 10 percent rate hike will increase that charge to 9.46 cents per kilowatt hour. The state average is 14 cents per kilowatt hour.
