Roseville Electric customers' rates will increase beginning Feb. 1.
The City Council on Wednesday night approved a two-year rate hike that includes increases for energy rates as well as a new $4 per-customer fee for climate change mitigation regulations.
Under the approved plan, a third tier for residential customers using more than 1,000 kilowatt-hours a month will be established.
The council also voted to reinstate the backbone recovery fee, which had been discontinued in the early 1990s. The fee will be charged to development to pay for construction of necessary infrastructure, such as substations and high-voltage power lines in new areas.
Roseville Electric officials said the increase was needed to cover rising power prices, the cost of impending climate change mitigation regulations and build needed infrastructure.
Without the increase, Roseville Electric would be short $85 million by 2012, officials said.
Members of the development community, including a representative from the Building Industry Association, opposed the backbone recovery fee as well as other new development fees on Wednesday night's agenda, saying the additional costs come at a bad time in the housing market.
Some residents also opposed the electric rate increases.
"It's very clear that a good portion of this increase is strictly to subsidize ongoing development in the city," Jack Wallace said.
