We're facing significant challenges in order to continue providing the safe, reliable services that our customers expect. New environmental regulations, maintaining an aging infrastructure and building for our future require significant investments over the next several years. To fund these investments in our community's utility system, we are proposing changes to utility rates. If approved by City Council, the new rates would take effect on Jan. 1, 2010.
Natural gas
- A decrease in the Gas Cost Adjustment (GCA) will be proposed in November.
- Lower gas costs are expected in 2010.
Electric
- Like other utilities, we are required to comply with very stringent environmental mandates.
- The EPA and the state of Colorado will require up to $160 million worth of emissions control equipment at our power plants by 2015.
- Our costs to purchase fuel to generate power are expected to rise in 2010.
Water
A multi-year rate case will be proposed to fund the Southern Delivery System and cover our increased costs to operate and maintain our existing treatment plants, reservoirs and pipes.
To continue to provide safe, reliable, high-quality water service we need to make upgrades to our system. Among the planned improvements:
- Improvements to the Northfield and Nichols dams, both about 100 years old.
- Homestake reservoir/dam upgrade
- Hydrant rehabilitation and replacement
- Highline reservoir tank cover replacement
Wastewater
- For the safety of our customers, employees and the environment, a $12.6 million chlorine-free, ultraviolet disinfection system will be installed at the Las Vegas Wastewater Treatment Plant.
- The continued inspection, rehabilitation and upgrade of the wastewater collection system.
What does that mean for your typical residential bill?
| | Current | Proposed | Difference | Percent Change to Current Total Bill |
| Electric | $53.38 | $61.50 | $8.12 | 4.5% |
| Natural Gas | $61.36 | $53.33 | -$8.03 | -4.4% |
| Water | $34.79 | $36.86 | $2.07 | 1.2% |
| Wastewater | $30.68 | $32.70 | $2.02 | 1.1% |
| Typical Residential Monthly Bill Total | $180.21 | $184.39 | $4.18 | 2.3% |
View the 2010 Rate Case Filing executive summary and service reports in PDF. The entire filing, including supporting documents, is available for inspection at the City Clerk’s Office, 30 S. Nevada.
What we are doing to control costs
- Reducing our workforce by 200 positions
- In 2006, we targeted the elimination of 200 positions (about 10 percent of our workforce) over five years. Due to the down economy, we are accelerating the job reductions and will achieve the 200 position goal this year.
- The workforce reduction will avoid approximately $14 million annually in labor costs
- We are using improved processes, automation and cost-effective new technologies to serve 14,000 more customers now compared to 2003.
- Labor costs are projected to be just 15 percent of the 2010 Utilities’ budget.
- Making cuts across the organization:
- In response to declining revenues, we have reduced operations and maintenance costs organization-wide by $16 million in 2009.
- Deferring projects and maintenance:
- We will continue to defer projects and maintenance on our systems that can wait.
- Some work can no longer be postponed without risking additional outages, regulatory compliance and the safety of our customers and employees.
Customer Assistance
Some of our customers may have difficulty making ends meet in this difficult economy. We provide ways to help customers reduce their energy and water use and make paying their bill a little easier:
