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toV I t e ISM Wain Street, CenterviOe, XA S5038 <br />`LStII.III:IShe, 1857 651-42.9-3232 or Ta-t 651-429-8629 <br />Memorandum <br />Date: April 27, 2022 <br />To: Honorable Mayor and City Council Members <br />Through: Mark R. Statz, City Administrator/City Engineer <br />From: Bruce DeJong, Finance Director <br />Item: Inflationary Budget Impacts Discussion <br />City staff have reviewed energy bills with an eye toward seeing how the 2022 and 2023 <br />budgets may be impacted by planned rate increases. <br />Utility <br />Xcel <br />CenterPoint <br />Connexus <br />Year Total <br />2020 <br />$60,470 <br />$9,388 <br />$8,601 <br />$78,459 <br />2021 <br />$59,646 <br />$10,197 <br />$8,583 <br />$78,426 <br />Average <br />$60,058 <br />$9,793 <br />$8,592 <br />$78,443 <br />Rate Increase <br />6.40% <br />12% <br />0% <br />2022 Estimated Cost <br />$63,902 <br />$10,968 <br />$8,592 <br />$83,461 <br />Budgets — Gen Fund & Utilities <br />$86,000 <br />We are served by three utility services in Centerville. Two of the three have filed for rate <br />increases with the public utilities commission. The rate increase for Xcel is for the entire <br />bill. The rate increase for CenterPoint is only on the base fee. There is a separate charge <br />line for the actual natural gas cost on the bill. <br />We have experienced dramatic fluctuations in Centerpoint with the gas charges going <br />from 40 cents per unit up to 70 cents per unit in the last year. We are also still paying <br />over the next five years for the February, 2021 weather event when a cold snap froze out <br />Texas and put an incredible spike in the natural gas market. <br />Overall, we don't see any need for changes in our budgets for 2022 or 2023 based on our <br />previous conservative budgeting practices. <br />We have attached links to several articles explaining the circumstances of each utility and <br />their justification for rate increases. <br />