Utility rates on the rise across Central Missouri
COLUMBIA, Mo. (KMIZ)
Mid-Missourians are seeing electric rate increases from three major utility providers this summer.
Ameren, Boone Electric and Columbia Water and Light have all increased their rates or will increase them just as the summer months roll in.
Earlier this month the Columbia City Council discussed a proposed $8.3 million revenue increase for Columbia Water and Light utilities. These increases are expected to take effect on July 1.
The city says this near 7% rate increase is necessary to address an increase in operation and maintenance expenses while also ensuring adequate debt coverage for the entire water and electric fund.
"If you compare our rates to similar cities in Missouri, we have low rates," Ward 1 Councilman Nick Knoth told ABC 17 News in a recent interview. "While that is great and we all enjoy that, at the end of the day we do have to pay to maintain our infrastructure in terms of electric and water, and things only get more expensive by the day."
Boone Electric increased its rates on April 1.
Boone Electric told customers on its website that the average cooperative member who uses 1,110 kilowatt-hours per month of gas heat will see an increase of approximately $190 a year. Average members who have electric heat will see their rates increase even more -- an average of around $235 per year.
The cooperative cited a 10-year financial forecast from a recent study it conducted as the reason for the increased rates.
“The cost of essential materials we use every day to keep our systems up and running have gone up considerably,” a statement on the Boone Electrive website says. “A revenue requirement study and the 10-year financial forecast showed the need for an 11% increase in revenue at the co-op.”
Boone Electric’s board of directors approved the increase.
Ameren Missouri filed a request to the Missouri Public Service Commission to adjust its electric base rates in 2023 last August.
The new rates include an 11.6% increase. The average electric customer (1,017 kilowatt-hours of usage per month) will be billed about $12 more a month. Ameren rates have been increasing for the last five years at a rate of 2.3% per year, according to a report from Edison Electric Institute Typical Bills and Average Rates Report.
Americans spend on average $429.33 per month on utilities, which averages out to roughly $5,151.96 per year, according to the Bureau of Labor statistics.
Missourians pay on average $135 per month for their energy bill, $23 a month for their water bill, and $63 for natural gas. The total monthly cost came in slightly above the national average at $447.05 when streaming, phone and internet bills are added.
These utility increases could have a negative impact on low-income families in Missouri.
Steve Hollis, the Columbia Human Services manager pointed out during a recent muleskinners meeting, that often times homelessness stems from people not being able to afford their utility bills, especially during the winter and summer months
“We see lots of folks who can afford their rent and then they can’t afford the gas bill when winter comes,” Hollis said. “It’s a huge issue.”
Currently, Missouri has the 14th highest total utility cost in the United States. What separates them is the cost of natural gas. On average Missourians pay $108 a month for natural gas, which is the sixth-highest total in the country.
