Boulder City power, water rates going up

By Jean Reid Norman (contact)

Wednesday, May 20, 2009 | 4:31 p.m.

Boulder City residents will pay more for water and power beginning July 1.

As part of the budget for the 2009-2010 fiscal year, the City Council voted Tuesday to raise power rates by 9 to 13.6 percent — depending on usage — and water rates by 10 percent.

The electric rate increase was set for 3/4 of a cent per kilowatt hour across the board. Because Boulder City charges based on usage — with smaller users paying less — the across-the-board, flat rate hike actually has a larger impact on smaller users.

The increase amounts to an increase of 13.6 percent for the smallest residential users, 9.38 percent for the heaviest residential users, 9 percent for small commercial users and 11.54 percent for heavy commercial users, according to the city’s budget documents.

But even with the increase, residential rates are 30 to 50 percent below what NVEnergy charges residential users in the Las Vegas Valley, according to the budget documents.

Water rates, meanwhile, will go up 10 percent across the board. Rates will range from $1.507 per 1,000 gallons for the smallest residential users to $2.42 per 1,000 gallons for the heaviest commercial users, the budget documents say.

The power rate increase is expected to raise an extra $1.125 million.

Of that, $500,000 will be used to help pay for the city’s share of the Southern Nevada Water Authority’s third water intake under construction at Lake Mead. The intake is needed to ensure continued water supply from the lake as the water level recedes as the result of drought.

Another $250,000 will be used to prepare for a rate increase from NVEnergy — which provides some of the city’s power at a wholesale rate — and the expiration of Boulder City’s contracts for hydroelectric power from Hoover Dam. The rest will be used as a reserve in the Utility Fund, the budget documents say.

The water rate increase is expected to raise an extra $400,000, to be used to pay increased costs of the city’s water operations.

A workshop on how the new power rates will affect businesses will be held at 6 p.m. May 26 at City Hall, 401 California Ave. The City Council will hold a public hearing on the new rates during its regular meeting at 7 p.m. June 9 at City Hall.