Utility bills to go up

Nome Joint Utilities General Manager John Handeland prepared the public for an increase in utility bill costs and the school district for a considerable heating bill, during Monday’s Nome Common Council meeting. The exact fuel price won’t be known until September. Handeland said NJUS’ pricing is based on the average of August prices. “We do expect it to be up considerably,” he said. Handeland estimated that NJUS the fuel surcharge could go up from 17 cents per kilowatt hour to “somewhere around 30 cents a kilowatt,” he said.
Since NJUS also stores fuel for the school district, he said that Nome Public Schools are probably looking at a $900,000 heating fuel bill.
The council passed a resolution for a utility revenue anticipation note of up to $8.6 million to purchase diesel fuel for NJUS. In a prior meeting a NJUS representative said the utility would purchase only two million gallons this year. Northrim Bank provides the financing. Handeland, present virtually on Zoom, said that this was the largest note ever taken. He also reported that the wind turbines are operational again, hoping that the power they generate will reduce the diesel fuel consumption. He said while the turbines were not spinning, the utility had to spend $100,000 in diesel fuel but insurance will reimburse NJUS for the cost of the additional fuel used.
In other business, the Nome Common Council passed a resolution supporting adult education and family literacy week Sept. 13-19; passed a resolution to recognize September as Childhood Cancer awareness month; passed a resolution to apply for a grant program to purchase a wheeled loader with 8-ft pallet forks; and passed an ordinance in first reading to extend a lease of city property to NSEDC.