Paducah Power Rates Hurt City Government Too, But Not as Painful as Residents’ Bills
High Paducah Power rates are impacting both residents and the city through higher bills for government buildings and lighting.
City Manager Jeff Pederson said electricity makes up a small portion of the budget, totaling more than $1.1 million out of a $44.7 million budget in fiscal year 2013.
City spokeswoman Pam Spencer and Pederson explain:
“With the city’s budget, usually around 70 percent or a little bit more of our budget is allocated for personnel, paying our folks,” Spencer said.
“That’s one reason why the electricity doesn’t stand out,” Pederson added.
Pederson said the city had planned for higher rates, so it didn’t make a large impact on the budget.
More than half of electricity costs come from streetlights, some of which run on Jackson Purchase Energy’s system.
Pedersen said the city has been studying a switch to LED streetlights to make them more energy efficient. But he says that move is still being studied and would involve a “considerable” investment.