The Aspen City Council is leaning toward a plan to raise electricity rates involving differing percentage increases depending on the category of the user.
During a work session on Tuesday, the council queried utilities director David Hornbacher and utilities operations manager Lee Ledesma about details of the plan that Mayor Mick Ireland and most council members seemed to favor. Councilman Steve Skadron was not present.
The plan, one of two options city staff presented, would involve restructuring the rates over four to six years to bring all four of its customer categories — residential, small commercial, large commercial and city facilities — in line with the cost of delivering power.
The city is seeking to close the difference between the predicted amount of electricity revenues to be collected during 2012 and future years, and the higher cost of providing the service. Denver-based Red Oak Consulting has forecast that discrepancy to be about $300,000.
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