City’s Electric Rates Will Increase 2.3 Percent In July
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WATER VALLEY – Customers who receive electricity from the Water Valley Electric Department will pay more starting July 1. As previously reported in the Herald, aldermen approved the 2.3 rate adjustment for electricity during the April monthly meeting due to increased costs in maintenance and operational expenses and a decrease in revenue. The rate increase is projected to generate an additional $94,480 annually.
Water Valley Electric Department Superintendent Brandon Richardson requested the raise, explaining that the last increase was in 2019.
“Tennessee Valley Authority (TVA) is our governing regulatory authority. They set our rates and we in turn adjust accordingly,” Mayor Donald Gray added during discussion in the April meeting. The mayor also noted that rate increase was recommended by TVA and consultants who assist the city’s electric department.
“We face inflation in everything. We have to pay Tennessee Valley Authority every month, and we have to collect the money from our customers to pay them,” Gray added.
The vote for the rate adjustment was 4 – 1, with Ward Two Alderman Freddie Folson casting the sole dissenting vote.
During the June city meeting Gray told aldermen that the price of electrical supplies has increased, adding that transformers are almost $1,000 each. The mayor also said there was a storage and it takes months to receive transformers or other supplies.
“We ordered about five or six transformers, we don’t have any in stock right now. Everything is just crazy right now as far as the supply chain,” Gray reported.