Lyndon Electric Weighs 3% Rate Hike As Utility Faces Cash, Capital Needs

LYNDON — Lyndon Electric Department is considering a 3% rate increase to begin building a cash reserve as the utility faces major repairs, aging equipment and other capital needs.

The increase would raise about $430,000 in its first year for an operating reserve, according to the Vermont Public Power Supply Authority. The reserve would give the utility cash to cover storm damage, equipment failures and other unexpected costs without having to borrow money or wait for a future rate case to recover the expenses.

The proposal comes as Lyndon Electric has little cash on hand and a growing list of projects that commissioners say can no longer be put off.

At the Electric Commission’s Sept. 30 meeting, General Manager Jason Lefebvre said the utility does not have enough cash to handle deferred maintenance and unexpected expenses.

“We have no cash on hand. We have a lot of things that need repairing, and we need money,” Lefebvre said.

Lyndon Electric’s assets are worth about $15.4 million. The utility has followed a guideline of keeping long-term debt at about 50% of its assets. Its current long-term debt extends through 2039.

And now it’s time for your Moo92 sports…

The Montreal Canadians dropped it’s home opener on Tuesday night to the Carolina Hurricanes by a score of 6-4. Zack Buldoc with 2 goals in the loss for Montreal. The Canadians will host the Nashville Predators on Thursday. Puck drops at 7pm.

And in local sports…

The North Country high school girls soccer team stayed hot with a 4-1 victory over Lamoille on Tuesday to improve to 9-2 on the season while the Lake Region Lady Rangers lost to the #1 team in the state, the Harwood Highlanders by a score of 7-0. Lake Region will travel to Lyndon on Friday while the North Country Lady Falcons will be on the road against Thetford Academy. Both kickoffs at 4pm.

The North Country boys soccer team will be in Harwood tonight while the Lake Region boys will host U-32. Both games at 4pm.