Las Vegas Sun

March 29, 2024

Boulder City weighs first electricity rate hike in 20 years

Boulder City

Boulder City residents and businesses might see an increase in electricity rates starting Jan. 1, if the City Council passes a proposed resolution.

City officials are proposing the rate hike to help pay for increased contract prices with NV Energy estimated to cost the city about $4 million over the next year. Boulder City doesn't generate its own electricity and buys power from several sources to redistribute.

City Finance Director Timothy Inch said the rate increase might come as a shock to residents because Boulder City hasn’t had an electricity rate change in 20 years.

“Nobody wants to raise electric or utility rates, but we’re caught in an environment where we don’t have any choice,” Inch said. “The flip side of it is we’ve enjoyed real favorable electricity prices in Boulder City for a long time.”

The City Council is scheduled to conduct a public hearing and vote on the rate change Dec. 8.

The proposed increase in rates will vary based on how many kilowatt hours a household or business uses, Inch said.

Residential customers using up to 2,000 kilowatt hours would pay 7.43 cents per kilowatt hour, a 1.93 cent increase. Households using 2,001 to 4,000 kilowatt hours would see an increase of 2.54 cents.

Large businesses would pay 11.14 cents per kilowatt hour, up from the current rate of 8.25 cents.

The proposal also suggested raising electricity rates for the Boulder City Hospital, but after speaking with hospital Chief Executive Officer Tom Maher at the Oct. 27 City Council meeting, council members decided to leave the hospital rate at 5.55 cents per kilowatt hour.

Maher said the council passed a resolution in 2003 that allows the hospital a lower rate than residential and commercial customers.

Inch said if residents want to lower their electric bills they should consider gas-powered hot water heaters, dryers and stoves. Hot water heaters account for about half of the electric bill for most homes, he said.

“If they cut back then we get to cut back because we’re not buying as much electricity to provide them with,” he said.

For businesses and residents concerned about the proposed rates, Inch said, he will be holding a workshop at 6 p.m. on Nov. 23 at City Hall, 401 California Ave., to explain the proposal and answer questions.

“I would encourage anyone who has any questions to come to workshops or contact us,” Inch said. “I’m not in the business of trying to keep anything from the public. I want them to know as much about what we’re doing as they possibly can.”

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