Utility costs to increase for Ames through June
April 20, 2006
Electricity bills may be going up for Ames Municipal Electric Services customers because of unexpected coal transportation costs caused by a fire late last month, and could have minor adverse affects at Iowa State.
The fire, which is believed to have started in a pit area at Williams Bulk Transfer on March 28, has closed the facility until June. The exact cause is still under investigation. The plant, located 33 miles north of Ames in Williams, is operated by Alliant Energy Transportation Co., a subsidiary of Alliant Energy.
“We are using as many resources as possible to get it up and running again,” said Scott Drzycimski, spokesman for Alliant Energy.
Peter Englin, ISU Department of Residence director, said the incident is not directly affecting rates at Iowa State, but issues such as these do have an impact.
“We strive to maintain a reserve to address significant cost increases,” he said.
Iowa State proposed a 4 percent increase to the Board of Regents for housing costs next year that will be discussed May 3 and 4 at their last meeting.
As of April 1, the Energy Cost Adjustment rate has jumped from $.0091 to $.0243 per kilowatt-hour. Ames Municipal Electric Services, 515 Clark Ave., will charge its customers a varying monthly fee to combat the extra costs.
“An increase even over one month is hard on citizens and industrial customers,” said Donald Kom, director of Ames Municipal Electric Services. “Our staff is doing everything we can to minimize and eliminate the problem.”
Kom said other options are being explored, including finding new sources of coal, implementing different unload and delivery points from Council Bluffs to East Dubuque, Ill., and using other utilities, including Iowa State’s power plant, to purchase electricity.
Representatives from Alliant Energy will be meeting with Kom Friday to discuss updates on the Williams plant and possible prevention options for the future, including upgraded fire alarm systems.
Customers can calculate their electric costs using a formula located on the city of Ames Web site, www.city.ames.ia.us .