BWL RECOGNIZED FOR RELIABLE PUBLIC POWER

The American Public Power Association (APPA) recently honored the BWL with prestigious national awards for efficient electric operations and community service.

The BWL is one of only 64 public power utilities nationwide to earn recognition as a Reliable Public Power Provider (RP3). Winning the designation demonstrates a utility’s commitment to employees, customers and the community.

The BWL achieved the second highest award, the Platinum Level, in the RP3 award program.

To achieve an award, the program measures proficiency in the areas of reliability, safety, training and system improvements. Criteria in each area are based on sound business practices and a utility-wide commitment to safe and reliable delivery of service.

BWL HONORED FOR COMMUNITY SERVICE

The BWL was also awarded APPA’s national Community Service Award, which recognizes good neighbor activities that demonstrate the commitment of the utility and its employees to the community.

Colorado Springs Utilities was the only other utility to share the award with the BWL. The BWL was recognized for initiating events and activities that improve quality of life within the community.

The APPA Community Service Award

cited the following BWL programs:

· The Adopt A River environmental beautification program

· The BWL Chili Cook-Off

· BWL sponsorship of Silver Bells in the City

· The BWL elementary school safety program

· BWL EnergyWise Services, which partners with local
nonprofit groups to help customers use energy and
water more efficiently

The Community Service Award was presented to BWL General Manager Sandy Novick by APPA Immediate Past Chair Bill Gallagher at APPA's national convention in Chicago in June.  The BWL is the only Michigan municipal utility to win both the Community Service Award and the Reliable Public Power Provider Award.

Water rate

increase takes

effect July 1

Water customers are reminded that a previously approved rate increase takes effect July 1.

The 6.5 percent increase was approved last year as part of a two-year rate increase for BWL water utility customers. A residential customer using about 4,500 gallons of water per month will notice an increase of about $1.03 in their monthly water bill. Sewer bills are not affected by the water rate increase.

August 1 hearing date set for electric, steam rate proposals

BWL commissioners have set an August 1 public hearing date on proposals that, if approved, would result in small increases for the utility’s 98,000 electric customers and large increases for the steam utility’s 161 customers.

The electric rate proposal would increase rates across the board by 1.5 percent for the BWL’s 98,000 electric customers. For a residential customer consuming 500 kilowatt-hours (kwh) per month, it would increase monthly bills by 57 cents. BWL electric rates would remain at more than 20 percent below those charged by Consumers Energy, the state’s largest electric utility.

The proposed steam rate adjustment would increase rates by 65 percent for General Motors and the 160 customers in the downtown steam district. The large increase is due primarily to the major loss of steam load when GM closed four Lansing-based manufacturing plants in 2005. GM once accounted for about 70 percent of the system’s steam sales, but total system sales dropped by nearly 60 percent as a result of the plant closings.

Even with a 65 percent increase, steam rates will be competitive with the cost of natural gas, the main competitor for heating buildings in Michigan and the Midwest. Steam customers also benefit from not having to install and maintain on-site boilers for their building heat.

BWL rates will also be competitive with rates paid by steam users in other parts of the state. Even with a 65 percent rate increase, for instance, BWL steam rates will be nearly 40 percent below those charged to steam customers in the city of Detroit.

While the proposed rate increases partially address the need to increase utility revenue, the BWL continues to take aggressive action to reduce costs and increase efficiency. The 2007 fiscal year budget includes a decrease of nine positions and includes minimal increases for wages and salaries.

The utility also continues to look for ways to become more efficient.

In the last year alone, several initiatives have saved more than a million dollars through increased efficiency and lower costs. More savings are expected in future years. The BWL’s successes in improving efficiency recently resulted in a national award from the American Public Power Association (see related story in this issue of Connections).

The August 1 public hearing will be held in the boardroom of the BWL’s customer service center at 1232 Haco Drive in Lansing. The hearing will begin at 5:30 p.m. Customers may appear in person or submit written comments to BWL Corporate Secretary, P.O. Box 13007, Lansing, MI 48901. Copies of the electric and steam rate proposals can be obtained at the BWL’s Haco Drive office or at City Hall in downtown Lansing.