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Chaunte City Commission Approves Ordinance to Add New Electric Rate for Heavy Load Retail Customers

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CHANUTE, Kan. — The Chanute City Commission Monday night approved an ordinance adding a new electric rate class for heavy load retail customers, such as data centers.

As adopted, this rate would apply to customers whose billing demand averages over 2,000 kW or more per month. The two largest electric customers in Chanute will see peak loads in the summer of at most one megawatt, but it’s usually less than that.

The heavy load rate would include a demand charge of $12 per kilowatt, energy charge of $0.035 per kilowatt hour in addition to applicable fuel and energy cost adjustments. If a new heavy load customer’s usage necessitates improvements to the electric distribution system, those costs would have to be paid by the customer before they can receive service.

Commissioners discussed items they want to talk about with Chanute Regional Development Authority (CRDA) board members at a scheduled work session on March 9. This discussion comes after voters last year rejected a proposed additional sales tax for CRDA, which had previously been funded through another sales tax from which funds are now committed to paying off a major HVAC project at the museum and library complex.

Commissioners indicated there are four items they wish to discuss, including strategic plans and funding, current programs, a director’s position that is now vacant, and the city’s role in economic development.