LRES to increase natural gas rates in 2024
News | Published on December 5, 2023 at 4:37pm EST | Author: henningmaster
0By Chad Koenen
Publisher
Lake Region Energy Services customers in the Deer Creek area will see a slight increase on their bill in January.
During its regularly scheduled meeting on Monday night, the Deer Creek City Council heard from a representative from LRES who stated the average customer will see approximately a 5 percent increase in their bill next year.
According to a report presented to the city council, LRES rates have remained the same since going into the natural gas business in 2017. The rates have stayed the same despite an over 20 percent increase in operational costs since 2019, a 38 percent increase in average material costs since 2017 and a 13 percent increase in wholesale natural gas prices since 2018.
The actual rates increased by LRES will be 7.9-8.7 percent, which will be offset by an anticipated decrease in the Purchased Gas Adjustments that customers have seen on their bills. The PGA enabled LRES to adjust the amount customers are charged each month to reflect the actual cost of the natural gas used.
In the end, the estimated increase for each natural gas customer from LRES will be less-than $50 per year.
In other news
• Heard the League of Minnesota Cities Liability Coverage bound for the 2024 year. Property/casualty rate will decrease .75 percent, workers compensation rates will decrease by average of 15 percent and dividends back to cities will total $3 million.
• Accepted a $3,000 donation from the Deer Creek Lions Club Pull Tabs to support of the Deer Trails Day fireworks in 2024.
• Approved the engineering firm Bolton and Menk for the city’s water tower and well house rehabilitation project. As part of the city’s grant it needed to request proposals from engineering companies for their services in a competitive bidding process.
• Discussed potential design concepts for the water tower when the project is completed next year. A representative from the Wadena-Deer Creek School District asked if the city if would consider putting a WDC Wolverine paw on the water tower, similar to what was done in Wadena. The city council said it will request more information about the paw, but expressed a desire to keep the deer and creek on the new painting concept for the water tower.
• Approved a proposal for $2,140 from Baker Excavating by a 4-0 margin, with Dan Hendershot abstaining, to remove the foundation, stumps and ash from 107 N Clark St., which was burned down by the fire department as part of a training exercise earlier this fall. The proposal did not include removing the garage, which the city council said it would like to see added to the proposal. The council approved the proposal and will add on the cost of removing the garage to the proposal.
• Heard the monthly police report from New York Mills Police Chief Bobby Berndt who stated the police department logged 31 hours of time in Deer Creek last month and responded to 18 calls.