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LOGAN, Utah (AP) -- City leaders in Logan may hike electricity rates for businesses and Utah State University to cover the rising costs of buying power.
Increasing rates would also allow the city to replenish its power reserves and pay for improvements to the utilities infrastructure.
Light & Power Director Jay Larsen says the city is facing a $5-per megawatt jump in the cost of power it buys from the Deseret Generation and Transmission Cooperative near Vernal.
A long-term contract with Idaho Power will also expire later this year.
Under the proposal, rates would increase 5 percent for USU, 12 percent for small commercial businesses, 3 percent for large commercial entities and 6 percent for industrial users.
The proposed increase is expected to generate about $1.1 million.
Information from: The Herald Journal, www.hjnews.com
(Copyright 2007 by The Associated Press. All Rights Reserved.)