Nevada County Picayune and Gurdon Times Newspaper Archive

Rate ordinance adopted

Purchasing gap power for customers of the Prescott Water and Light Department was approved by the Prescott City Council in a special meeting.

The meeting was held Monday, Jan. 9. For residential customers the bottom line is a 20 percent increase in their electric bill. For January, though, the fuel adjustment will be suspended. However, it will return in February. Either way, electric bills will be higher throughout Prescott.

Prescott Mayor Howard Taylor said this should carry the city through the 90 day contract it has with Entergy for gap power.

Larry Stockton, the citys general manager, said the problem between Entergy and the Arkansas Electric Cooperative is the transmission of electricity over Entergys lines. The agreement should carry the city through March, at which time it is hoped the problem will be handled.

I expect this will have to go before the Federal Energy Regulatory Commission (FERC), Stockton said, if AECC and Entergy cant get together on a transmission agreement. This rate should take care of everything through June. If we have to go past that, well need to look at it again.

The rate passed by the Council, he said, is based a 14 megawatt base with the balance in incremental costs with the Entergy system. The base load is higher during the summer when temperatures rise and more electricity is used.

Part of the problem, he said, is Entergy telling AECC how it must transmit power over Entergys lines. Stockton will be going to a meeting between Entergy and AECC Wednesday, Jan. 18.

Taylor said Prescott is being represented by Henry Thompson, who used to work for Entergy and knows how Entergy works and what to expect. Entergy, he added, is aware Thompson is representing Prescott.

The Council also approved a budget for 2006. Carl Dalrymple, the citys accountant, said this budget was based on 11 month financing instead of 10 months. He added nothing more was put into the budget for the Parks and Recreation Department, leaving it at $78,000.\

He told the Council, the city has an anticipated surplus of $592,767.

Taylor said the Parks budget could wait before being modified to see about increases in insurance premiums.

The Council reviewed the Prescott-Nevada County Library budget, but took no action, instead asking for more information on library expenses. This will be addressed at the February meeting.