Co-op addresses concerns regarding city utility rates

Pemiscot-Dunklin Electric Cooperative General Manager Charles Crawford, left, answers questions about the cooperative's services and rates from the Cardwell City Council including Alderman Irvin Harper, right, and city employee, Charles Moore, center.

Staff photo by Joshua Payne

Crawford informed the city officials that he would try to answer the questions as best he could.

City Clerk Mary Vaughn explained to Crawford that the city's chief concern is the city lights, which have increased in price by more than $400 per month since switching from AmerenUE.

AmerenUE has had a rate increase the same as Pemiscot-Dunklin, Crawford informed.

Vaughn asked if municipalities received a discount through the company.

Crawford explained to the officials that the cooperative has an even rate for all users.

When asked about the extra $20 per month fee, Crawford noted that the fee was a service availability charge.

"This is a fee to maintain the service," Crawford said. "Transformers use electric whether power on or off and if the transformers need to be replaced, we have to maintain the service."

Vaughn noted that the city had a contract with AmerenUE that would not allow an increase in rates until 2011.

The cooperative did not take on contracts in the switch, Crawford explained.

When asked about the recent power outage in the southern part of Dunklin County, Crawford explained that stretched wires from the ice storm broke during the recent heat.

"We are trying to get FEMA to approve the replacement of the wire, because we now know that we have a problem," Crawford said.

Vaughn asked if the problem was through M & A Power Cooperative. According to Crawford, "the problem was basically through M & A because they own the part of the substation that was malfunctioning."

He added that "Pemiscot-Dunklin Electric Cooperative was the only supplier in Missouri with three separate windmill farms."

"The only problem with windmill power is the need for a backup," Crawford said.

On days that the wind does not blow or blows too strong, the mills do not produce sufficient power, Crawford noted.

When asked about rates, Crawfod said that AmerenUE's rates were within $1.45 of the current Pemiscot-Dunklin rates.

Mayor John Prince asked if the city had any options on economizing on the street lights, because of the amount of cost to the city.

"I don't know that I have a solution for that right now," Crawford said. "I will check in on the contract and see what can be done."

Vaughn noted that when the city was informed about the rates prior to the purchase by Pemiscot-Dunklin, the rates were quoted as being lower.

Crawford explained that the cooperative had no way to know about the two rate increases that occurred since the quotes were made.

Vaughn added that customers in Cardwell had called the office and been told by employees, "tough, you don't like it opt out and get a generator."

"I am upset with that," Crawford said.

"I don't like it and I will get it changed."

When asked about the line being busy during an outage, Crawford noted that only one individual is answering telephones during the night. The individual answering is also in charge of contacting other employees and officials to fix the problem, according to the general manager.

Crawford also noted that the proposed Carbon Tax would cost the co-op and customers if passed into law.

"This will kill a lot of energy companies," Crawford said. "It scares us."

He also invited everyone to the Pemiscot-Dunklin annual meeting on July 23, at the American Legion building, where members will have the opportunity to vote for directors, win door prizes, and enjoy food and drinks.

Prince thanked Crawford for his attendance at the meeting, but noted he wished there was better news.

Crawford said, "I do too, but I have no control over these rate increases."

He added that "if there was ever a problem or issue to call him and he would get it fixed."

Also during the City Council meeting, reports were given from the various city departments.

Police Chief Anthony Parker gave the police and fire reports, which consisted of an attempted burglary at an auction building, no fires, and four ambulance calls.

Following Parker, Charles Moore gave the water and sewer report, explaining that the department had four shut-offs, a couple of street repairs, and received motors for the pumps.

Moore also noted that the mosquito sprayer was working well.

Vaughn informed the council during her report that the budget would have to be amended because of costs to the city.

"The Water and Sewer fund is hurting the most and the Police Department fund is also over budget," Vaughn said. "Overall we are all right, but one big disaster away from defeat."

She added that the city had eight properties needing to be published for sale and that no personal property tax had been received during the month.

When discussing the bill from Douglas Electric, the council voted to pay for the one completed job, but to hold payment on the second job until it is completed.

The council also voted to approve amending the budget to allow an extra $1,000 or part-time help in the Water and Sewer Department. This part-time help will be used to continue cleaning the sewer lines, which are currently approximately one-third completed.

A tax rate hearing will be held at 5:30 p.m., August 13, following council approval on Thursday.

Additionall, aldermen approved a motion for James Stacey to be hired as a part-time help for the Cardwell Police Department with the stipulation that all back taxes have to be paid before being hired.

In other matters:

* The council made the decision to set July 16, as the cutoff date for accepting applications for the current city opening;

* The council set July 20, as the date to review applications for the current city opening;

* The council approved the renewal of the current trash service contract;

* The council announced the collection of tires until August 17;

* The council set a special meeting for 6 p.m., on July 20, to discuss personnel;

* The council approved the publishing of the Semi-Annual Financial Statement of the City of Cardwell.

The next Cardwell City Council meeting is scheduled for Thursday, August 13, 2009.