LaHarpe to take loan for utilities

LaHarpe's February bill was nearly 10 times the amount the city normally pays each month for electric services. Residents will see their average monthly bill increase by $8 to $10 as the city spreads out payments over time.

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March 16, 2021 - 9:59 AM

LaHarpe City Hall Register file photo

LAHARPE — Add LaHarpe to the growing list of communities that were socked by exorbitant electric costs following last month’s’ bitterly cold weather.

City Council members have declared a state of financial emergency, necessary to apply for a low-interest loan made available by the state to pay the city’s $157,615.70 electric bill for February.

The February bill was nearly 10 times the amount LaHarpe normally pays each month (a shade under $17,000 monthly.)

The loan would be repaid by reinstating a portion of the fuel cost adjustment the city adds to the base electric rates LaHarpe customers pay each month.

In 2020, the Council removed the 5-cent FCA after switching wholesale electricity suppliers from Evergy to the Kansas Municipal Energy Agency (KMEA). After last month’s cold snap, the FCA will rise to 3 cents per kilowatt hour.

That means a customer’s average electric bill will increase anywhere from $8 to $10 a month, explained City Clerk Michelle Altis, depending on the amount of electricity consumed.

Once the loan is paid off, the FCA increase will be rescinded.

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