[Last Updated: 6/13/2014 9:57:35 AM]
For Immediate Release
TCL&P to hold Public Hearing
(Traverse City, Michigan) — Traverse City Light & Power (TCL&P) will hold a public hearing regarding a proposed rate increase at its next board meeting on June 24, 2014, beginning at 5:15 p.m. in the Commission Chambers located on the second floor of the Governmental Center (400 Boardman Avenue). If the proposed rate increase is approved, it will be the first rate increase for the utility since 2006.
The proposed rate increase comes after Utility Financial Solutions performed a cost of service study for TCL&P and identified that some customer classes are paying above while some are paying below the calculated cost to serve each customer class.
“Because there are some significant differences in the cost of service compared to the current rates, Light and Power is not proposing to adjust the rates immediately to cover the cost of service as that adjustment would be too significant and could cause a financial burden on those customers that fall within the rate classes being subsidized,” said Tim Arends, TCL&P Executive Director. “Instead, Light and Power is proposing to adjust rates gradually to recover the cost of service which will provide an acceptable level of increases to customers.”
All TCL&P customers are invited to attend the meeting and provide public comment regarding the proposed rate increase during the public hearing.
The proposed rate increase for each customer class is as follows:
Customer Class Proposed Rate Increase
Residential Water Heating 1.7%
Residential Space Heating 0.9%
Senior Residential 2.7%
Senior Water Heating 2.7%
Senior Space Heating 1.0%
Public Authority MP2 2.0%
Public Authority MP1 2.4%
MP1 at 103% 2.4%
Commercial/General Secondary Service 2.6%
Commercial Demand/General Secondary Service 1.5%
Commercial Demand Primary Metered 0.9%
Commercial Hot Water Heat 1.8%
Commercial Electric Heat and Air Conditioning 2.8%
Primary Interruptible 0.4%
Documents detailing the proposed rate increase can be found in the June 11, 2014 Board packet, pages 74-97, located on the TCL&P website at tclp.org or by clicking here.
Traverse City Light & Power is a community-owned, community focused municipal utility that offers reliable energy at low cost rates in the region to over 11,500 customers in Traverse City, and parts of Blair, East Bay, Elmwood, Garfield, Peninsula and Paradise townships.