Doug Buresh of the KY Municipal Energy Agency, the agency for 11 municipally-owned power services across the state, presented its role to Falmouth City Council at its regular meeting on March 16, 2021.
Buresh explained that the city is an original member of the agency, and it joined 10 other members some six years ago so that those cities could work to own their own power and set their own rates, something that was not possible under the old structure that involved KY Utilities. He explained that the city is now in its third year of a five-year contract as the contract began in May 2019.
He also explained that, under KU, the city had to pay transmission fees in a process called “pancaking,” and that is no longer applicable. While the courts have allowed the de-pancaking (where no fees are paid for transmission) for a period of 10 years, KYMEA is fighting to keep the de-pancaking process permanent. This de-pancaking allows a freer market for KYMEA members.
Buresh told Council that all debt in KYMEA is paid off, and they plan to have solar energy by December 2022.
Councilperson Sebastian Ernst asked at what rate the city buys its power, and Buresh replied that it is at 6.6 cents, a little higher than some municipalities because of its load rate, and that is higher because of the city being so largely residential. Ernst then asked how we compare to other cities, and Buresh explained that smaller cities are higher because of higher numbers of private residences. Ernst remarked that Falmouth has a 41% markup for its power, and Buresh replied that KYMEA does not control what locals charge.
He clarified that the city does not buy from KYMEA. Falmouth utilities is a stand-alone business, and its distribution and other expenses are local. Profits are reinvested locally.
Council went on to unanimously pass the ordinance that is required by the state that regulates local limits of discharge of heavy metals in other such pollutants into the wastewater system. They also heard the first reading of a reworked ordinance for the fire department. The new ordinance prescribes an appointment for the chief and assistant chief as needed or as dictated by the mayor who reserves the right to replace those positions as needed, and council will approve or deny those appointments. It also speaks to reimbursement for volunteers as well as training hours. The provision that sets a limit on numbers of volunteers was questioned and will be revisited before the second reading and final vote.
The city asked to surplus a bucket truck that was recently replaced by one that requires no CDL, and council approved that surplus unanimously.
A resolution approving the NKADD Hazard Mitigation Plan, a plan required by FEMA for reimbursements in case of a disaster, was unanimously approved.
In old business, Councilperson Luke Price stated that he has one bridge light quote, and some street lights are being replaced as the upgrades begin around town, starting most likely on US 27.
After some discussion, Council approved a rate of $6.50 per thousand for the East Pendleton Water District’s request to provide access from a subdivision to a city line.
Mayor Ron Stinson called for a committee to review the electric rates while he reminded council that they are in charge of those rates. Ernst recommended that the present nuisance committee transition into a committee that examined those rates once its work was completed. City Attorney Brandon Voelker stated that the nuisance ordinance is similar to other cities’ ordinances, and more discussion centered on how to handle blighted properties, especially those with no landlords present or no progress being made in clean-up.
The meeting was adjourned. The next caucus of Falmouth City Council will be held on Tuesday, April 6, at 6:30 p.m. The public is invited and is encouraged to attend.
