The board approved the $705 million 2010 budget Wednesday, according to Olson. Nearly 39 percent of the budget — $274 million — will be used to retire debt, Olson reported.

“Based on the assumptions the Agency utilized, there should not be a need for a wholesale power rate increase in the next five years,” Olson stated. But he cautioned that doesn’t mean there would be no need for a retail rate increase in the city during the five-year period.

“However, since 83 percent of the cost to run the Electric Department is directly tied to our purchased power price, this should mean we will have rate stabilization in the future.”
From the Daily Advance