City Utilities board approves operating budget

The Board of Public Utilities, the governing board of City Utilities of Springfield, yesterday approved its 2014 budget, allowing for $554.8 million in total disbursements. That's down from reprojected fiscal 2013 disbursements of $561 million.

The budget moves to City Council for a first reading Aug. 26. Along with the budget, the CU board also approved three years of electric rate increases, also subject to council approval, according to a news release.

If approved, increases would be enacted in October 2014, by 5.9 percent; October 2015, by another 3.9 percent; and October 2016, by 3.7 percent. Customers with average usage will realize gains of $5.41 per bill for October 2014 and $3.75 increases for the final two years.

According to the release, the rate increases are needed by 2017 to meet environmental regulation requirements, transmission grade costs and improve reliability and security standards.