Electric Rates Will Increase In Water Valley
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WATER VALLEY – The cost of electricity in the city will increase 2.1 percent following a vote in the monthly Board of Alderman meeting last week. Mayor Donald Gray cast the deciding vote on the rate hike after aldermen split, 2- 2.
Gray reported a consultant employed by the Water Valley recommended the increase after reviewing the Water Valley Electric Department’s expenses and revenue.
“He said we have to have a rate increase or the electric department will go in the hole,” Gray noted during the March 7 meeting. The mayor cited the biggest factor is the cost to electricity the city purchases from its provider, Tennessee Valley Authority (TVA). The electric department spends around $400,000 each month to purchase electricity from TVA.
Gray also cited delinquent electricity bills the city is not able to collect, an aging infrastructure and the ever-increasing cost of equipment as additional factors driving the increase.
“Knowing the conditions, I will vote for it,” Gray said as he broke the tie vote.
Ward Two alderman Freddie Folson and Ward Four alderperson Nicole Folson voted against the rate increase.
“A lot of people are already complaining about their electric bill. This will make three years in a row that we will have an increase,” Freddie Folson said prior to casting his dissenting vote.
“I know it has to be done, but I’m against it,” Nicole Folson added.
Alderman-at-large Herbie Rogers and Ward Three Alderperson Bonnie Cox voted in favor of the increase.
Ward One alderman Ron Hart abstained from voting.
“There are no other places we can cut?” Hart asked.
“We are probably fixing to lose another worker, and we are down one already. You don’t want those kind of cuts,” Gray answered. Citing a recent storm, the mayor said the crew was out from 7:30 that night until 2 the next afternoon with no rest. Gray also said a request for another boom truck from electric department superintendent Brandon Richardson cannot be fulfilled.
“I said we can’t do it, period. The boom trucks cost $400,000, there is no way we can do it,” Gray said.
Board members contemplated having the city’s consultant attend an upcoming city meeting to answer questions from the public about the rate hike.
“We may have to go to the auditorium,” Freddie Folson said about extra seating capacity for the public.
“Freddie, I wish you were right. I have seen some very important issues before and the room was empty,” Gray said.
“A lot of them are going to complain, but they may not show up. But I know a few who are going to be here,” Freddie Folson said.
Gray said the rate increase will likely take effect in July.
We are taxed enough already. Tell the City to stop stealing our money. This is how elected officials get voted out of office.