Bountiful City Raising Your Power Rate To Maintain Politician Play Fund (Update)

EDIT: Bountiful Power sent me information that changes some items in this post: The $4/month increase is a customer charge increase (not your actual kWh rate) and they expect about $800,000 in additional revenue/year. To view some comparisons to Rocky Mountain Power and the outcome of this change see my recent post on this.

About a week ago, I noted the city had come out with its annual spin on bilking you on your power rates. This week, they doubled down and are sending you a glossy four page ad (with more ridiculous “investing” spin) about your rates going up $4/month. As I noted last week, the city is already transferring $2.45 $2.49 Million from the city power department (by overcharging you on power). So what does $4/month come out to per year in extra cash the city politicians can play with?

Well, per the 2010 census, Bountiful had 14,504 households in it (since that’s seven years ago, but I’ll be conservative and stick with that number). Therefore, $4/month X 12 months X 14,504 households = $696,192 extra cash flowing to the city.

That’s a minimum figure as the city has grown since 2010 and I believe rates will also go up for churches, charities, and businesses in Bountiful. Supposedly, the increase will go to infrastructure improvements but don’t be surprised if next year’s transfer from the city power dept. magically increases as well. So rather than use part of their $2.45 annual fund, they’ll take at least $696K more from families, churches, small businesses…etc. Priorities, priorities.

The city admits they use the power company in lieu of taxes for a revenue stream. Thus, by playing with rates, they can do two things: 1) Evade truth-in-taxation law and 2) Claim the city has the lowest taxes for its size the state (AKA bait-and-switch).

If the city wants to continue to manipulate your power rate, they should be brought under Public Service Commission oversight and if they want to continue the laughable claim that you’re an “investor” and this is a “dividend” they should also comply with SEC filings just as Rocky Mountain Power must. Personally, I would rather see this entire ‘municipal power as de facto taxing entity’ practice banned.

For all posts related to Bountiful Power, click here.

UPDATE: It just sunk in that this power rate hike is permanent (I’m not the sharpest tool in the shed…). The increased revenue is an annual income to the city. That means the city is really effectively raising taxes on everyone (to the tune of at least $696K per year). With that juicy new revenue stream, I find it much harder to believe we won’t see the power fund transfer to city coffers jump (even if the funds are initially used for infrastructure improvements).

Next, on the pamphlet, under the new solar customer rates section (bottom of last page), it appears solar customers will have a 9.25 cents/kWh rate when they use power. The concern that raises for me is 9.25 cents/kWh is the current rate. Does that mean everyone else will face a higher rate (due to the increase) while solar folks get the old (current) rate? That sounds like they’re getting an additional subsidy. I am not cool with that at all IF that is the case but the pamphlet unclear.

Finally, I find it a ironic and annoying that I got the information which encourages citizen feedback after the city council meeting (on Tuesday) was held and the vote taken. I’m willing to bet the rate increase was approved. I’ll update this post when I find out.

EDIT: See the note at the top of this post. As this was a customer charge increase kWh rates are not affected, thus traditional and solar customers still pay the same rate for power.
EDIT II (8/17): The last utility bill letter included a “Follow-up Notice To Bountiful City Utility Customers”. The notice disclosed that the transfer from the power dept. is actually $2.49 Million ($40,000 more) than the prior notice. The new amount represents “7.8% of the total budgeted expenditures in the Light & Power fund.” I’ve updated the amount above.

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One thought on “Bountiful City Raising Your Power Rate To Maintain Politician Play Fund (Update)

  1. Pingback: Bountiful Power Has Regressive Rate Structure, Higher Than Rocky Mountain Power Depending On Usage | Utah Rattler

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