Scranton City Council
Council reviews
rate plan options

Gabe Faimon | Reporter

SCRANTON—Discussion of implementing an electrical rate plan resumed at the start of the Jan. 20 meeting of the Scranton City Council. The city’s consultant, Greg Wright, of EMG, LLC, provided additional information from an ongoing study of the electrical distribution system.

Examination of accumulated data and rapidly changing demands on the system indicated that establishing a responsive and effective rate plan must address two objectives. The first relates to concern for customers’ value and cost of electrical power.

Wright outlined the second objective, to help “the city meet revenue requirements based on its annual budget.”

Wright and the council explored options for making the plan flexible to meet both objectives, while also making it adaptable to changing circumstances that affect operation of the electrical system.

Consensus was established that the plan must incorporate two distinct options, one which would take into account cost-based fuel adjustments and another that would take into account usage-based loss adjustments.

To address fuel cost adjustment issues, the city relies on its membership in the Kansas Power Pool (KPP), a group of Kansas cities that have banded together to obtain reliable, low-cost energy through joint planning and acquisition of electric power and related resources.

A critical role of KPP is to monitor, determine and recommend action related to the amount power suppliers pass through to KPP members due to cost fluctuations for production and transportation of electricity.

The council agreed that usage loss adjustment must take into account two factors. One involves the efficient use of electrical power and providing a mechanism to ensure that city inefficiencies are not borne by Scranton rate payers.

Wright commented that overall, no major problems regarding the city’s use were discovered. He said the data indicated potential for small improvement in a few limited areas.

The second loss adjustment factor involves inefficiencies that are inherent within the city’s electrical distribution system. Most of these inefficiencies relate to capability of the system to meet increased consumer demand. Age and size of overhead wires and transformers are examples of factors which contribute to such inefficiencies.

Scranton City Councilman Jack Mayfield expressed concern regarding the lack of a plan to improve efficiency.

“Loss adjustment without looking where we’re going … looks like a pipe dream,” Mayfield said.

Scranton City Councilman Ken Croucher stated that action taken by the council during its Dec. 2 meeting was a significant start for improving system efficiency. That action authorized expenditure of $22,000 for replacement of several old transformers and poles, which would later make it possible to install heavier overhead wires and replace old, light-gauge wires that did not have sufficient capacity to effectively meet increased load demands.

The council affirmed the city needed to formalize an electrical rate plan with options for addressing cost based fuel adjustments and usage based loss adjustments. City attorney Todd Luckman agreed to prepare the draft of an ordinance that would formalize such a plan.

In other business, the council:

• approved a request from Derek Terry to waive charges for a $489.67 water bill. The bill occurred when vandals opened an unlocked water meter valve. All plumbing fixtures in the residence at 402 S. Topeka had been removed when the interior was gutted for renovation.

• approved a request from Jaime Stout for installation of four deaf child street signs. The signs were requested to alert drivers in the neighborhood that her 6-year old son may not hear approaching vehicles.

• received a report from Scranton Police Chief Jon Reed, regarding service performed by the Scranton Police Department in response to the tragedy which occurred in the city on the morning of Jan. 12. Reed stated that a total of 88.25 hours were spent on the case. Reed said he was pleased with the cooperation and support received from the Osage County Sheriff’s Office and other law enforcement organizations during response to the tragedy.

• received comments from Scranton City Councilman Eddie Lester that demands for a volunteer to coordinate summer ball activities have led to burnout and high turnover. Lester suggested that if the community is unable to enlist volunteers, then the city might need to consider offering compensation to someone to perform the coordination and management tasks.

The next Scranton City Council meeting is scheduled for 7 p.m. Feb. 3 at city hall.