The Virginian-Pilot
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The cost of wholesale electricity for ElectriCities members is likely to increase 14 percent on Aug. 1.
On Friday, the North Carolina Eastern Municipal Power Agency's Rate Committee met to review cost projections and then approved a recommendation to increase rates 14 percent.
The North Carolina Eastern Municipal Power Agency meets July 30 and is expected to approve the recommended wholesale cost increase.
Customers in member communities, such as Elizabeth City, Edenton and Hertford, probably will begin to see an increase in their September bills, based on August usage.
Anne-Marie Knighton, Edenton's town manager, said she did the math in her head on the drive back from the meeting in Rocky Mount on Friday and figured Edenton residents could see an estimated 12.7 percent increase.
She cautioned, however, that it's a rough estimate and that she will have to do more research in coming weeks to determine the exact increase.
Knighton will make her rate recommendation to the Town Council in July.
"I was really stunned when I got the news," she said. "In my 20 years, we've never had a rate increase this dramatic."
Knowing that there's no way to avoid the increasing cost of energy, she said the focus will be on educating customers in conservation.
Knighton said 50 customers recently signed up for electricity audits of their homes and that Town Hall would be audited in two weeks.
"We are going to do everything we can to help customers understand the rate increase," she said. "We're asking our customers to do it, but we're going to do it, too."
In his budget message, Hertford Town Manager John Christensen said he would not recommend a retail rate increase until projections are completed. He did suggest that the town may have to consider adjusting a fuel surcharge to cover any increases.
Christensen and Mayor Sid Eley could not be reached for comment Friday.
In Elizabeth City, City Manager Rich Olson had already warned the City Council that the entire rate increase would have to be passed along to customers.
"I think we've done all we can to buffer the increase," Olson told the council during a presentation in May.
In past years, the council was quick to request cuts to avoid increasing rates while preparing the budget. This year, however, there were few suggestions for the council to make.
Ken Raber, senior vice president of ElectriCities services, will be in Elizabeth City on July 18 to provide the City Council a detailed overview of the rate increase. The meeting, scheduled to start at 10 a.m., will be televised.
"This is a national issue that is affecting everyone," Olson said Friday. "It's not just an ElectriCities issue."
Also on Friday, the Virginia State Corporation Commission said that Dominion Virginia Power may increase residential rates by about 18 percent to recover its soaring fuel costs.
In May, Albe-marle Electric Membership Corp. increased its rates to cover the rising cost of wholesale power and expansion efforts, said Chris Powell, a spokesman.
An average bill for 1,000 kilowatt-hours increased by $7.26, to $117.23 per month.
He said the electric cooperative re-evaluates rates constantly but thinks the existing rate will hold through the rest of 2008.
Albemarle EMC serves about 12,000 customers in the region, according to its Web site.
Lauren King, (252) 338-2413, lauren.king@pilotonline.com
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ElectriCities Cover Up of Bad Refinance Deal
you got it right. the damage was done.
NCEMPA's debt service payments are rising $12 million a year, or equal to a two-percent hike in the wholesale rate.
http://www.wilsontimes.com/News/Local/Story/Electric-rates-face-August-increase--
ElectriCities says other utilities did this too. Which other utilities did this? And they say their rate increases are just like Progress Energy. Progress Energy is regulated by people who understand energy (Utilities Commission) and they will not allow Progress Energy to impose rates this high on consumers in one year. Progress Energy is not screwing up refinancing and making people pay for a screw up and then a cover up.
The Wilson customers want to know:
How much has the screwed up refinancing of the debt cost us in total?
When was it discovered to be a bad deal? Officials in Wilson told us in March was when they were told but that the CEO admitted he knew in October. But, we the people, the people who have to pay, were not told until June and many city officials were not told until June.
When did the CEO inform the cities, the board? March for some; June for most.
How long had the CEO known when he informed them? Jesse Tilton k
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ElectriCities and Cover Up of Bad Refinance Deal
12 Questions of Accountability
To: NC Legislators, City officials, Attorney General, State Auditor
After months of denying a rate increase, then denying the rate increase is due to anything other than fuel costs, ElectriCities of NC finally admitted a booboo. But this one is very costly to the good people of eastern NC - all of those in the cities. They finally admitted, after telling us to USE FANS to save money. What is the booboo, you may ask?
Jesse Tilton CEO “converted a portion of the debt from fixed-rate loans to variable-interest loans in 2004. The move was expected to save around $10.5 million a year in interest payments, but instead, the collapse of the subprime mortgage market caused those interest rates to climb unexpectedly. Between last December and April, the payments were nearly $4 million over budget. They have since converted that debt back to fixed rates, but the damage