The proposed Owensboro Municipal Utilities minimal rate increase was approved Tuesday evening at the Owensboro City Commission meeting. The rate will result in customer’s electric bills going up by .7% and .9% for Fiscal Years 2024 and 2025, respectively, to help combat inflation and cost increases.
The City Commission voted unanimously to approve the increase.
The rate increases were fueled due to higher than anticipated rates of inflation, OMU General Manager Tim Lyons said at a previous City Commission meeting.
“As I’m sure you understand, higher than anticipated inflation combined with supply chain issues continue to have increased our cost more than what we expected. It is also critical that we recover our cost to serve our customers,” Lyons said.
Director of Finance and Accounting Lynn Holland previously said it’s “a very minimal increase.”
Through the increase, the overall stabilization plan projects a reduction in the energy cost adjustment plan for FY24 and FY25.
Specifically, a Single Phase Residential customer that paid $15 in June 2022 would see the monthly bill increase to $16.50 in June 2023 and to $18 in June 2024.
