SIOUX FALLS, S.D. (KIELO AM) - Utility companies continue facing increasing costs to produce electricity and part of the increase is driven by air pollution rules facing coal-fired power plants.
Manager of Southeastern Electric, based in Marion, Brad Schardin says the company has experienced years of increasing energy costs.
Schardin says 75 cents from every dollar members pay to Southeastern goes to generating and transmitting to substations. He says that's put a lot pressure on costs in the last decade, and he says that the key force that's driving rates.
Schardin says the board looks extensively at workforce numbers and says Southeastern is about as thin as it can get. He says the power cost issue has been a driver over the last several years.
He says Southeastern's customer can expect a rate increase later this spring. He says for the average residential customer the increase will be about $8 a month.
Schardin says there's uncertainty in some changes in clean power plans, "maybe some of that whole world in politics changing a little bit, we may see some help and some relief there and have some stability here in the years ahead."
Schardin say while costs continue to rise, so does the demand for electricity. He says even with low commodity prices, there are new grain drying facilities, new hog and dairy facilities, building and upgrading shops and remodeling the 100 year old farmhouse.
Southeastern serves and area from west of Freeman, to areas west and south of Sioux Falls.