The American Public Power Association (APPA) distributed their 2012 electric rate study earlier this week and Spencer Municipal Utilities (SMU) residential electric customers paid the lowest rate of any residential customer in the state of Iowa in 2012 at 6.8 cents per kilowatt hour. The data used in the study is what each utility reports to the Department of Energy and it is the average revenue per kilowatt hour. The average revenue consists of the rate, meter charge and ECA for SMU customers.
“This is great news for Spencer Municipal Utilities and the residents of the community of Spencer. We always strive to maintain affordable rates for customers even when a rate increase is needed to cover our costs,” Amanda Gloyd, marketing and community relations manager.
Public owned utilities are compared to both investor-owned and rural electric cooperatives in the study and the lowest residential rate in an investor-owned community in the state of Iowa came in at 8.3 cents per kilowatt hour while the lowest residential rate for an electric cooperative came in at 8.8 cents per kilowatt hour, making Spencer residential customers paying the lowest in the state.
On the commercial side, SMU ranked the 7th lowest rate in the state at 6.9 cents per kilowatt hour with the lowest investor-owned utility coming in at 6.8 cents per kilowatt hour and the lowest electric cooperative coming in at 6.3 cents per kilowatt hour for commercial rates.
“Low residential and commercial electric rates have a positive impact on the community for the economic development of the community as well as future growth within the community,” adds Gloyd.
Spencer Municipal Utilities is a leading provider of cable, Internet, telephone and i wireless cellular service in the Spencer community and has been providing water since 1886 and electric services since 1901.
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