LIGHT AND POWER RATES
Recommend 8% Increase

The Light & Power division has two programs: distribution of electric power for 2,600 customers in a designated service area and street lighting within the city limits. The division is responsible for maintaining over 16,000 street lights within the city of Sioux Falls. The City supplies power for 4,295 of these lights. The rest of the lights are supplied power by Xcel Energy, Southeastern Electric Cooperative, and Sioux Valley Energy.

WHY ARE WE RAISING RATES?

Additional revenue is needed primarily to cover the rising cost of power purchased from its power suppliers. In addition, the additional revenues will help to fund needed capital projects and will keep reserve balances at a responsible level.

The majority of the Light & Power Division revenue comes from the sale of electric power. The distribution program purchased over 90 million kWh’s of electricity in 2009, a decrease of 2 percent over 2008. The Light & Power Division purchases its power from Western Area Power Administration (WAPA) and Heartland Consumers Power District (HCPD). Power supply costs from WAPA and HCPD are expected to increase by 5 percent for 2011.