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Thursday, November 20, 2008 10:32 AM Cities fight power rate increase By Rochelle Moore | Times Staff Writer Wilson leaders fought against a 4 percent electric rate increase that was passed Wednesday by the N.C. Eastern Municipal Power Agency. Fred Horne, Wilson's director of utilities, said during the NCEMPA rate committee meeting that the increase should be postponed because of declines in the energy market, including nuclear fuel, which is used in the production of electricity. The cost of natural gas, oil and gasoline have all dropped during the past month. Horne said that information presented by ElectriCities staff, including a projected $19 million increase in costs in 2009, was based on October information. "The numbers were generated in October when the fuel prices were higher than they are in November," Horne said. "We ought to wait and see if this $19 million cost materializes." Horne suggested waiting until April or July to implement a rate increase, if one is needed. Ken Raber, an ElectriCities senior vice president, said that staff continues to monitor costs regularly and the estimate is the most up-to-date available. "Based on the current information we have today, we have no reason to change the numbers," Raber said. After the meeting, Mayor Bruce Rose said he is not only against the rate increase but also concerned about its impact on Wilson residents getting ready to face a cold winter. The NCEMPA board met Wednesday afternoon, after the rate committee, and approved the 4 percent rate increase that will go into effect Feb. 1, 2009. During the meeting, several town officials expressed opposition to the increase and told harsh stories of people unable to pay electric bills. Kerry McDuffie, Fremont town manager, said that the rates were driving businesses away from the town. Belhaven Mayor Adam O'Neal shared a story of visiting one resident who was eating peanut butter and crackers because of a high electric bill. When NCEMPA's last electric rate increase of 14 percent went into effect in August, the town of Belhaven absorbed the increase and also dropped rates another 2 percent. "These rate increases are (terrible) for these citizens," O'Neal said. "We need to do everything we can to keep rates low. I've had at least three utility bills handed to me from people with tears in their eyes." The NCEMPA board includes leaders from 32 cities, including Wilson. As a NCEMPA member, the cities have part ownership in several power plants and are able to buy electricity at wholesale rates through NCEMPA. ElectriCities staff recommended the 4 percent rate increase not only to cover increasing expenses but also to increase its fund equity account from $5 million to $20 million by 2010. ElectriCities staff say that $5 million in fund equity is not enough to pay for unplanned increases in cost to operate its plants or purchase energy resources in an unstable market. "I'm having a hard time supporting this rate increase at a time when everything is going down," said Donald Evans, a Wilson City Councilman and NCEMPA board member. Raber said that even though energy prices, including natural gas and gasoline are decreasing, the demand for coal is still at record highs from other countries, like China and India. He also said that other electricity providers are passing on rate increases due to increasing costs to provide electricity to customers. "They are having the same drivers and costs in the market that we are," Raber said. "The commodities that are driving this are not the same commodities that are going down. What you're seeing in the market is not what's driving the utility industry and the coal industry. All energy providers are going up. Other states are experiencing 25 to 30 percent increases." Andre Knight, a Rocky Mount city councilman, urged the board to consider cuts to the budget and also to seek legislative help in the General Assembly for the spiraling costs of electricity that are impacting state residents. "I've been bombarded by letters, concerns and e-mails," Knight said. "Have we looked to see where we can make some cuts? When I go back to my city or when I sit on the City Council, they want to cut our heads off. We have got to show our customers and our citizens that we are looking at everything." NCEMPA board member Sam Noble said that the ElectriCities board of directors plans to meet today at 3 p.m. to review the upcoming 2009 budget and will look for ways to reduce its expenses. The NCEMPA board is slated to adopt the 2009 budget during its December meeting. rochelle@wilsontimes.com | 265-7818 |
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unbelievable said...
http://www.wilsontimes.com/News/Breaking/ Does this sound as stupid to you as it does me? You read it right. They are out of money so they need to build up a fund and they need to do that by charging us. I know what you are thinking ... they could make cuts, freeze hiring, cut out advertising, sell their hybrid car, get rid of the wasteful fleet cars, stop buying goodies, stop taking trips, stop sponsoring groups and events, end their beach parties, eliminate too many lobbyists, eliminate communications, planning, marketing, regulatory affairs, economic development ... so many options. But they come up with charging us. And has anyone seen any cuts? I am beginning to believe the idiot CEOs standing before Barney Frank are better than the ElectriCities keystone cops. Tilton is gone but his legacy remains.
Thursday, November 20, 2008 at 10:56 PM
http://www.wilsontimes.com/News/Breaking/ Does this sound as stupid to you as it does me? You read it right. They are out of money so they need to build up a fund and they need to do that by charging us. I know what you are thinking ... they could make cuts, freeze hiring, cut out advertising, sell their hybrid car, get rid of the wasteful fleet cars, stop buying goodies, stop taking trips, stop sponsoring groups and events, end their beach parties, eliminate too many lobbyists, eliminate communications, planning, marketing, regulatory affairs, economic development ... so many options. But they come up with charging us. And has anyone seen any cuts? I am beginning to believe the idiot CEOs standing before Barney Frank are better than the ElectriCities keystone cops. Tilton is gone but his legacy remains.
Thursday, November 20, 2008 at 10:56 PM
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