City suspends proposed electric rate increase

The city council suspended a proposed rate hike Monday by Southwestern Public Service Co.

The new rates would average out to a 12.62 percent increase, said City Manager Rick Osburn.

Last month, SPS filed for a $64.75 million rate increase with the 80 Texas cities that the utility company serves.

Levelland is a member of an alliance of cities in the region that form a coalition. Historically, the Alliance of Xcel Municipalities has suspended such increases in order to negotiate better rates,  Osburn said.

He said the coalition has usually obtained rates that are about half of what SPS has sought.

If the city did not suspend the rate increases by Jan. 12, they would automatically become effective, he added.

‘This will take several months to play out,’ Osburn said.

On a motion made by Councilman Joe Bill Vardeman, the council voted to suspend the increases for 90 days.

Leave a Comment