Bountiful To Continue Taxing Residents Through Power Company

Sorry for playing catch up on this.  Things have been quite busy, lately.

About a month ago, the Bountiful Power & Light Director informed the City Council that facility upgrades would run about $1.8 million/year to pay off the bond for construction:

It’s way too early to know for sure, but Bountiful Light & Power rates could see a hike in the next year or two…

…“With a $17.5 million power budget, that would cost us about $1.8 million to pay off per year,” he said of a bond. “That could mean (a power rate increase) as high as 10 percent,” he said.

Interestingly enough, the city transfers over $1.8 million (closer to $2 million) from overcharged power users of the city-owned power company into city coffers each year.  Unlike private utility companies (such as Rocky Mountain Power), municipal (city government owned) utilities receive no oversight/regulation from the Public Utilities Commission.

Thus, rather than letting the company use the $1.8 million it collects for the upgrades, the city would prefer to increase power rates in order to maintain it’s $2 million cloaked tax on residents and businesses in a down economy.  And, no, there is no truth-in-taxation hearing required for such ‘rate’ increases.

Finally, the city recently more than doubled the “customer charge” in order to maintain the money transfer.  Looks like more of the same.  Not that I’m beating a dead horse, or anything.

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