City Council to speak on electric rate

Mitchel Anderson

The Ames City Council will provide a workshop with the Gilbert Community School District at Tuesday’s meeting, as well as a vote on whether to implement a 15-month trial period for an optional “time-of-use” industrial electric rate ordinance. 

During January’s meeting with the Ames School Board, City Council added the task of meeting with the Gilbert School Board to set up a goal-setting workshop. Tuesday’s workshop will be the first of its kind between the Ames City Council and Gilbert School District Board of Directors. The workshop will provide an opportunity for both the council and the Gilbert School Board to discuss any issues that would be of mutual interest. 

Another topic on the agenda for Tuesday’s meeting is the possible implementation of a 15-month trail period of a “time-of-use” rate ordinance for electricity consumption among industrial consumers. 

The Ames Municipal Electric System has seen an upward trend in electricity consumption among city residents and industries. In order for Ames Municipal Electric System to supply energy to all consumers at all times, it must be prepared for hourly maximum peak, especially during the summer when electricity use is at its highest, as well as a 7 to 10 percent margin of reserve.

Since electricity consumption is rising, Ames Municipal Electric System is searching for a way to reduce consumption during peak hours of the day and during high-usage seasons in order to delay the addition of more capacity, which would be costly and would affect the pricing among normal consumers. One way of doing this would be to implement this time-of-use rate ordinance that would encourage industrial consumers to shift high-production hours from on-peak hours to off-peak hours.

The City Council does not usually hear these types of issues during workshop meetings, but Ames Municipal Electric System wanted industrial consumers to have the opportunity to choose price options before the summer peaking season.