City of Hart, Michigan
MEMORANDUM
To: mayor clancy aerts & city council
From: STAN RICKARD, City Manager
Date: March 5, 2010
RE: industrial electric rates
On March 9, 2009 City Council adopted Resolution 09-07 approving industrial electric rates for Gray & Company and Hanson Logistics upon their connection to the Hart Hydroelectric system. Subsequently, Hanson and Gray signed connection agreements in August and December, 2009, respectively.
The physical connection work is proceeding and Hanson should be a Hart Hydro electric customer in early April, 2010. The target date for the Gray connection is late June-early July, 2010. During the 2009 discussions, City Council agreed in principal that Hart’s incumbent industrial customers (GHSP, Michigan Freeze Pack, Hart Wastewater Treatment Plant) should be offered the Gray-Hanson rate, a modest reduction over their current rate, upon the Hanson or Gray connection.
| INDUSTRIAL ELECTRIC
EXCEDING 2 MILLION KWH ANNUAL USAGE |
CURRENT RATES | PROPOSED INDUSTRIAL ELECTRIC RATES |
| Monthly base rate | $60.00 | $60.00 |
| Demand charge per KW | $8.00 | $7.00 |
| kWh charge | $0.0564 | $0.0530 |
I recommend adoption of Resolution 10-22 approving the proposed industrial electric rates for GHSP, Michigan Freeze Pack, and Hart Wastewater Treatment Plant.
APPROVED 3/9/2010
