MORAN — Electric customers will pay less for their power, eventually.
Moran City Council members discussed at length Monday a new rate study prepared by the Kansas Municipal Energy Agency that predicts power supply costs for the city will plummet, now that Moran buys its electricity through KMEA.
Buying its electricity through KMEA — which was able to procure electricity at a much lower rate than through Evergy, Moran’s old supplier — will pare the city’s wholesale electric costs from about $423,000 in 2019 to $267,000 this year.
That gives the city plenty of options, explained Darren Prince, KMEA’s regulatory and rates manager.
He gave the Council several scenarios, all of which revolve around rate cuts of about 5 percent or more. Prince recommended the city do nothing immediately, and instead watch the city’s fund levels in the coming months to determine which of the options would best fit Moran’s needs.
Regardless of which route the city chooses, Moran could lower electric rates while still building it’s electric fund reserves; supplementing the city’s budget in other areas, and setting money aside for capital improvements, Prince said.
The rate study included hefty increase in transmission costs, assessed by Evergy, which said Moran should pay more to help maintain an Evergy substation south of town.
Council members agreed with Prince’s recommendation; to do nothing for now, but monitor income and outgo, and plan on reducing electric rates at the end of the year, so they will go into effect Jan. 1.
COUNCIL members also discussed briefly whether the city should institute policies regulating the use of solar power.
Nancy Gardner told Council members she was considering adding solar panels to help curb her utility costs, and wondered what regulations were in place to guide her project.
Turns out there Moran has none, City Attorney Brett Heim noted.
Prince, who promised to return later this fall to continue discussions about rate proposals, said he also would bring information about solar panel ordinances for the Council to consider.
THE COUNCIL appointed Craig Miller as the city’s new Moran Fire Chief. He replaces Phillip Merkel, who resigned his post as chief but will remain with the Volunteer Fire Department. Curt Drake was appointed assistant chief.
THE 54 Fitness Center building will remain open.
Council members voiced concern previously that users who refuse to wear protective masks would be out of compliance with a state mask order allowed to take effect by Allen County commissioners.
