Oct 06, 2020

Haven City Council delays action on electric rates

Posted Oct 06, 2020 3:50 PM

HAVEN, Kan. — The Haven City Council’s proposal to revamp their electrical rate structure was a major part of Monday’s meeting. The discussion deals with how the city will  absorb a $100,000 per year hike in distribution rates from Evergy once a new substation near Burrton is completed. 

A rate study by representatives of the Kansas Power Pool suggests a streamlined rate card. It included establishing a new industrial rate. That has been met with some opposition from the city’s biggest electrical user Haven Steel Products.

Ken Brown, President of Haven Steel, addressed the Council about his desire for more competitive electric rates and the positive effect it could have on industrial growth in the community. Brown, who has been the new owner of Haven Steel for 10 months, expressed his concern over higher industrial rates and how it could affect his company. Brown said the Council’s decision on rates could have a large impact on how his company moves forward in the future.

Two options were presented to the Council. Option A would put more of the financial burden on the industry sector, while option B would place a higher load on city residents. Brown wanted to see his rates fall from what would be $0.13 per kilowatt hour under option A to just $0.10 under option B. Option B would also hike residential rates by an average of $40 per month, double the increase under option A.

The Council worked to come up with a way to keep the industrial sector happy without passing a large chunk of the cost onto residents. In the end, no action was taken. The Council said they would try to have a final decision at their next meeting. Brown stated he could wait for two more weeks but hoped the Council would take action then. That meeting is set for October 19th.