Guest opinion: LCEC plans its work – balancing the budget while maintaining reliability
LCEC has been affected by the economic downturn along with its customers. The cost of providing reliable electric service continues to increase in terms of design, permitting, materials, equipment and labor. Because LCEC realizes the importance of keeping costs as low as possible for customers, costs have been reduced throughout the organization. At the same time, maintaining reliability remains critical.
LCEC is doing everything possible to avoid raising electric utility rates. Built into utility rates and the 10-year maintenance and operations plan is a continued focus on providing reliable electricity to customers. This includes installation of electric infrastructure and maintenance where there is a critical need.
Electric utility rate structures incorporate projects needed to maintain reliability, utilizing standard utility construction methods. The most cost-effective method of construction utilized by utilities for transmission and distribution facility installation is overhead. However, underground installation is considered when the requesting party is willing to pay the cost difference between overhead and underground construction.
Throughout the nation, underground installation of facilities is considered an enhancement for aesthetic purposes and provides no additional benefits to the entire customer base. For this reason, utilities do not pass this additional cost along to all other customers.
The philosophy is that it is unfair to charge all customers for underground installation in a certain area when they do not receive the benefit or may not be willing or able to pay the substantially higher cost.
LCEC will continue to work hard to provide reliable electric service at the most cost-competitive price while providing options for customers that are willing and able to fund requests for service upgrades.
– Karen Ryan, APR, is the public relations manager for LCEC