Thursday, September 24, 2009
Utility rates change Oct. 1
By SUE WATSON
The Holly Springs Utility Department presented new utility rates last week to the board of aldermen.
Electric rates overall are down this year due to a rollback of the Tennessee Valley (TVA) Authority’s fuel cost adjustment surcharge, according to John Collins, HSUD general manager.
Gas and water rates will increase some, he said.
Compared to October 1, 2008, when electricity rates jumped 20 percent, electric rates will be lower beginning October 1, 2009, due to several factors.
“The utility did ask for an HSUD increase of 6.48 percent in electricity,” he said, “but the lowering of TVA’s fuel cost helped offset TVA’s rate increase and HSUD’s rate increase.”
Residential customers paid $110.60 per 1,000 kilowatt hours last October 1, but residential customers will pay $101.38 for the first 1,000 kwh beginning October 1, 2009.
Commercial customers will see a decrease in electricty rates for the first 1,000 kwh metered from last October’s $128.48 to $121.82 beginning October 1, 2009.
“Again, TVA’s fuel cost offset the increase,” Collins said.
Gas rates increased 10 cents per cubic foot of gas from 34 cents to 44 cents.
Collins said wholesale prices are going down because of the decrease in market price for natural gas. He said hopefully that trend will continue which could eventually offset the incease to the customer.
“The market price of gas is a flow-through cost to customers,” he said. “I think it’s the lowest it’s been in several years now.”
Residential water rates in the city of Holly Springs will go up slightly. The minimum water bill for the first 250 cubic feet of water will be $12 a month beginning October 1. The base load water rate for usage after the first 250 cubic feet of water will be $0.01966 per cubic foot of water. Rural water customers on HSUD’s system will pay slightly higher rates.
Rural customers will not see an increase in water rates unless the Public Service Commission approves HSUD’s request for an increase, Collins said.
Commercial water rates inside the city limits will cost $12.22 for the first 250 cubic feet of water. The base rate after the first metered 250 cubic feet of water will be the same as for residential customers inside the city limits.
Industrial water rates inside the city will cost $25 a month for the first 250 cubic feet of water with the base load rate applied after the first 250 cubic feet as for residential and commercial customers.
As with all utilities, Collins said the customer at all times has control over his utility bill. The less electricity, gas or water consumed, the lower the bill.
HSUD is embarking on an energy audit of its system and expects to replace old meters in order to save loss of energy or water over the system.
“We are hoping through this project to reduce our cost, which in turn reduces what customers pay,” he said.
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