City Utilities officials say an automated meter reading system will save a lot of money in the future.
But replacing all CU meters with the advanced technology will cost $47.8 million and require separate $1 surcharges on customers’ gas, water and electric bills to help pay for it.
After a lengthy discussion about the proposed 2010 budget Tuesday, the CU board endorsed the automated metering idea — even though the surcharges would be on top of planned water, electric and gas rate hikes in coming years.
Along with future water rate hikes, CU intends to seek 2 percent gas rate increases in 2013 and 2014. Electric customers will see about a 13 percent increase in October 2010 to help pay for the new Southwest 2 power plant.
CU also plans to seek a 3 percent electric rate increase in 2012 and 2 percent increases in 2013 and 2014, according to the utility’s five-year operating plan.
CU hopes to get feedback about the metering plan during a public hearing and joint budget study session with the Springfield City Council on Aug . 19.
It will be up to the council to approve any rate increases or bill surcharges.
The council likely will have a lot of questions for CU during next week’s meeting.
“I know there are a lot of advantages going to a smart grid,” said Mayor Jim O’Neal, who wasn’t able to attend Tuesday’s meeting.
“My first impression is that it’s something we should be pursuing. But at this point I don’t know enough to talk intelligently about what they’re proposing,” O’Neal said.
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