Griffin Power: Director to request rate hike

SHEILA A. MATHEWS :::

Griffin Power Director Bill Bosch on Tuesday announced that he will be presenting the Board of Commissioners with a rate hike request.

In a presentation made during the Board’s Tuesday, Feb. 25 workshop, Bosch explained the necessity for the rate adjustment, citing decreased revenue as a problem.

Bosch added that unfunded mandates with which the city must comply and increasing fuel costs are also contributing to the problems that led to the request.

He later explained that Griffin Power fuel costs including nuclear, coal gas and hydro have increased by approximately $1.5 to $2 million annually.

Bosch went on to say that residential customers represent the bulk of the shortfall, in part due to decreased usage.

“Our residential is not pulling its weight,” he said. “I’ve already said our residential customers are the ones not towing their weight with regard to rate.”

However, he did not suggest the rate increase be placed solely on residential customers, as he believes that would be an unfair burden.

“It’s going to apply to the entire customer base,” Bosch said. “It wouldn’t be fair to put it only on the backs of our residential customers.”

He cited a study conducted for the Electric Cities of Georgia (ECoG) as the source of the recommended price increase.

According to Bosch, the ECoG – an organization that provides operational services the municipal electricity providers throughout the state – determined that a rate hike of .0085 kWh is necessary to maintain the money flow that currently funds Griffin’s General Fund.

“That’s less than one penny (per kilowatt hour),” he said. “It’s been identified and recommended that we could ask for a .0085 adjustment, but that’s not what we’re going to do, though.”

Bosch said the average customer consumes 1,000 kWh monthly, and the rate increase he intends to request in March – .004, which is slightly less than half the recommended adjustment – will amount to $4 each month on those average bills.

Bosch stressed that should the BoC approves the rate hike, Griffin Power’s rates will remain competitive.

“Even with the cost adjustment, we are still among the lowest cost energy providers in the state of Georgia,” he said. “We will still be in the lowest 25 percent of all providers in Georgia, even if it’s implemented.”

Although the preliminary information was presented to the BoC, additional information will be brought before the governing body at its March workshop, slated to be held at 9 a.m. March 25.

“Basically, we’re going to evaluate the information and review it with the city manager and Board of Commissioners,” Bosch said.

 

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