Thursday, October 6, 2005
City aldermen vote to change gas rate structure
In order to keep abreast of a potentially volatile natural gas market the Holly Springs Board of Aldermen recently approved a Purchase Gas Adjustment (PGA) rate structure.
The structure went into effect October 1, according to Don Hollingsworth with the Public Works Department.
The PGA method helps natural gas utilities by setting the rate for gas the first day of every month based on actual costs of gas, rather than using an estimated pricing method for a 12-month period.
The board also adopted a flat-rate across-the-board rate adjustment that Hollingsworth said would be fair for every customer whether they be a residential, commercial or industrial gas user.
Under the new structure each customer is charged the same price per unit of gas used.
“The more you burn the more you pay,” Hollingsworth said. “We will go back to conservation.”
All customers will pay the same commodity charge (the cost of operation and maintenance) and the same PGA rate for gas burned. Residential customers will pay $10 for basic service (also called the minimum rate), commercial customers will pay $15 for basic service and industrial customers $30.
Basic service is a monthly fee charged customers to have service whether or not they meter any gas use for the month. The commodity charge is based on units of gas burned and is rated the same for all types of gas users.
Tips for conservation are listed at the bottom of this article.
Utility Director Tom Boone asked the board for permission to hire two entry level employees with a third one needed. Six applicants appeared before aldermen.
The board OK’d advertising for an electrical or mechanical engineering trainee to be groomed for a superintendent’s position with the electric department. Boone said new interns are needed to fill slots when superintendents retire.
In other business, the board discussed whether to permanently close the swimming pool or to repair the water filtering system and keep it in use. Alderman Naylond Hayes argued the old pool is important for youth as a recreational outlet during summer months.
“It is the only recreational facility for kids in the city for 85 percent of the summer,” he said.
Pool attendance averages about 80 swimmers per day, he said.
DeBerry argued that the cost for insurance and the risks as well as repair costs outweighed the benefits of keeping the pool open. He supports building a waterpark at Sam Coopwood Park.
Hollingsworth offered to study the cost of repairing the water filtration system for the board.
These tips for conserving gas were provided by Hollingsworth.
Report News: (662) 252-4261
Web Site managed and maintained