OMU News

FOR IMMEDIATE RELEASE April 29, 2009
FOR MORE INFORMATION, CONTACT Sonya Dixon @ 926-3200, ext. 336

Around the world, every 15 seconds, someone loses his or her life, either due to lack of water or because the water that is available is contaminated. We often take for granted the importance and value of a clean, safe water supply.

In the United States, we are able to enjoy safe, healthy sources of drinking water. And in an effort to celebrate the importance of this resource, Owensboro Municipal Utilities will join other utilities in commemorating National Drinking Water Week May 4-8.

For over 100 years, OMU has used its deep well system to bring low-cost, high quality water to the residents of Owensboro. In addition, OMU provides water to three water districts serving all of Daviess County.

During April, OMU distributed its annual Water Quality Report to each customer in the form of a bill insert. This report is also available on OMU’s website at www.omu.org.

In addition, a gift of appreciation will be given to anyone visiting the Customer Service Center on May 6, 2008.

Labels: celebrations

Over the last 20 years, citizens have seen increases in nearly every consumer good. OMU, however, has been able to maintain its base rates due to the use of reserves, development of income sources outside of rates and other financial and cost-saving measures. Careful consideration of and development of budgets, the forgoing and postponing of projects, and other measures have also aided in maintaining rates for our customers. OMU, as a result, has not increased its rates since 1992.

Despite these efforts, a recent rate study and review revealed that OMU is significantly under-recovering the cost of providing electric services to all of our customer classes. As a result, OMU’s Utility Commission considered and approved a two-phase rate increase and realignment in its regular meeting on April 16.

As part of this proposal, which will be considered and voted upon by the Owensboro City Commission, there would be a two-step increase to lessen the impact to our customers. The first phase would be effective June 1, 2009; the second would be effective January 1, 2010.

This would mean an overall billing increase of 25 to 30 percent dependent upon the customer class. OMU’s residential rate per kWh, for instance, would increase from 8.3 cents to approximately 10.5 by 2010.

For residential customers this would be an approximate increase of 27 percent, or a total $20.52 per month by 2010. Currently, the average residential customer, using 922 kWh per month, pays $76.22.

In addition, changes in the rate structure were also considered and approved by the utility commission which affect General Service Primary and General Service Secondary metered customers (commercial and industrial classes) including a clearer definition between the two classes, the institution of a power factor charge (effective June 2010), and demand and usage charges and distinctions. To learn more about the proposed structure changes, please contact the Customer Service Center at 926-3200 ext. 216.

We understand that increasing rates impacts our customers and that our customers are already being affected by the changing economy. However, we feel that in order to secure the financial health of OMU and our community, we have to assure we are recovering the cost of serving our customers.

For more information, please contact our Customer Service Center at 926-3200.