Thursday, December 11, 2008
Electric customers to get relief
By SUE WATSON
Holly Springs Utility Department announced last week that customers will see a decrease in the cost of electricity effective January 1, 2009.
The small rollback in costs for power is a result of a rollback in the fuel cost adjustment by Tennessee Valley Authority, provider of electricity to HSUD and other distributors across the Valley, according to John Collins, general manager at HSUD.
The fuel cost adjustment is a per kilowatt hour charge, but the amount customers save depends on the amount of energy they use. While savings will vary, residential customers can expect from $4 to $8 savings on their monthly power bill, he said.
The reduction in the fuel cost adjustment reflects a lower cost for TVA to buy power and natural gas, used to generate some of TVA’s power capacity.
Locally, residential customers are expected to see about a 5.25 percent reduction per 1,000 kilowatt hours used. General power customers will see a 14.14 percent decrease per 1,000 kilowatt hours consumed, according to John Collins, general manager at HSUD.
TVA began using a fuel cost adjustment mechanism in October 2006 following a spike in fuel costs caused by Hurricanes Katrina and Rita. Utilities use such mechanisms to help recover the costs they must pay for fuel and purchased power. The adjustment can go up or down, depending on quarterly upticks or downticks in the cost of fuel.
The Holly Springs Board of Aldermen adopted the recommended power rate reduction at last week's meeting.
In other business, the mayor and board of aldermen:
Curry said the village has two vacancies but seven people are on the waiting list. All 13 housing units at the shelter are operable, she said.
“Donations are coming in, but we cannot keep the food pantry shelves filled,” Curry said. However, donated foods are expected from several Christmas holiday food drives, she said.
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