Electric rates in Ames may rise come January 2008, six months before the increase was originally scheduled to take place.

The rising cost of such resources as gasoline, coal and metals are reasons for the sooner-than-expected increase, in addition to a delayed tie-line project – an interconnection project from Huxley to Ankeny.

These factors had been taken into account before, so that the rate was initially scheduled to rise by 3.5 percent in July 2008.

However, energy costs have risen at a faster rate than city officials expected, so the increase may take place in January instead.

“We try to moderate increases,” said Duane Pitcher, Ames director of finance.

Pitcher said city officials would rather implement a smaller increase at an earlier time instead of a larger one in July, which is the probable alternative to changing the rate in January.

If the energy costs continue to rise at the rate they are rising now, the rate increase in July would be 4.5 percent, instead of 3.5 percent in January.

Pitcher said city officials are at an impasse with the tie-line project at the city of Huxley. He said there is resistance about passing through some of its property.

This project would already cost the city, adding to the electric rate, but because there have been some delays, the cost of energy has risen.

In addition to these extra costs, Don Kom, Ames director of electric services, said one Ames power plant is 40 years old and some funding needs to go toward upkeep for the plant.

Kom said the city has maintained a fairly constant rate over the years.

“We went about 27 years without a rate increase,” Kom said.

The first increase after that long period of constancy took place on Aug. 1, 2006, which was also a 3.5 percent rise.

Kom said pushing the increase to January is not certain, but he said he would rather have people know about its possibility now than be surprised later.

“We went out to the City Council and to the public so that the public isn’t caught off guard,” Kom said.

Kom said the city will continue to try to monitor its costs.

“As we look at rate increases, we know that rate increases effect everyone, especially those on a fixed income,” Kom said. “We try to look at all alternatives and control costs as best as we can.”