As many well know Provo raised power rates this month. When residents heard that the average impact per household was $5 per month many asked why I was making it such a big deal. The big deal to me was that I didn’t want to be the mayor who raised rates after 22 years of no rate increases. Ironically it was the 22 years with no increases that forced my hand. Less than two weeks after we raised our rates we were told that our wholesale price would take a 10.2% increase this year. That is 3% higher than projections. Last year’s rate was up 4% and the year before up almost 4%.
What keeps me up at night is not that we had to raise rates (everyone could see that needed to be done). What keeps me up is that we may not be done with the rate increases.
Even after our increase, Provo residents enjoy some of the lowest power rates in the nation. I hope they know that we run a very tight ship and are very frugal with their dollars. If rates need to be raised in the future, Provo residents should know that we will be very transparent in all that we do. At the end of the day it is my job to make sure that we give our residents a value and at the same time charge enough to keep a strong financial foundation under one of our greatest City assets.