The utilities commission announced recently they have been forced to raise the price due to cost increases from suppliers.
"The providers are raising their rates so we have to raise ours," said Cliff Barth, Breckenridge mayor.
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The residential rates will be raised from .057 cents per kilowatt hour to .063 per kilowatt hour, Muehler said. The rates for commercial and industrial will remain the same.
"That's sixth tenths of one cent," he said.
Rates for off-peak will change from .038 cents per kilowatt hour to .041 cents per kilowatt hour. The winter-time rates for off-peak will change from .034 cents per kilowatt hour to .037 cents per kilowatt hour.
Muehler said the reason the rates have gone slightly up is because there has been an increase in the cost to purchase the power.
"Generation depends on water going through the dam," Muehler said. "The ongoing drought out west has had a real affect on that."
Breckenridge's primary source of power is Western Area Powers Administration (WAPA), Muehler said. The droughts have forced WAPA to purchase electricity on the open market in order to fulfill their contract with Breckenridge and other customers.
Muehler said the increases are generally the result of acts of nature and simply cannot be avoided.
The rate increase will be shown on the Nov. 1, 2007, utility bill.
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