City Utilities moves to increase electric rates

City Utility's Board of Public Utilities on Aug. 26 approved a three-year base electric rate increase to begin October 2011, pending City Council approval.

If approved, rates would increase: by 3 percent in October 2011, an estimated residential increase of $2.34 a month; by 2 percent in October 2012, an estimated residential increase of $1.75 a month; and by 2 percent in October 2013, an estimated residential increase of $1.75 a month, according to a CU news release.

The three-year total increase of 7 percent would result in an approximate total residential increase of $5.84 a month.

In accordance with City Council guidance, the CU board chose to ask for a series of smaller increases rather than one large increase, the release said.

The electric rate package moves on to City Council Sept. 7 for a first reading, the release said.

During the meeting, the board also approved its $520.7 million fiscal 2011 budget, which also is subject to City Council approval.