All Bay City utilities on table during 2012-13 budget talks; proposed electric rate hike now at 4.2%

All Bay City utility rates were discussed Monday at a city budget work session. An electric rate hike of 4.2 percent is proposed, slightly less than in an earlier plan. The Bay City Commission's Finance Policy Committee has been hearing budget proposals from the various city departments as commissioners prepare to adopt the 2012-13 budget. In his initial presentation on March 26, Electric Department Director Phil Newton projected rate increases of 4.7 percent in May 2013 and the same hike again in 2014. Newton said Monday he now is proposing a 4.2 percent increase each year instead. "The main reason for this was a reduction of $217,000 in the power supply planning area where we found some double counting," Newton said.

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