YES! We have right here on the blog BACK ON MARCH 27th ... That information was shared by Community Blogger Daryl Barber and the article that appeared in the Rocky Mount Telegram was posted over a month ago. Stability predicted for utilities - By John Henderson Rocky Mount Telegram published Monday, March 22, 2010. Geez, wonder why it took so long for Wilson folks to get this news. Another something to make you go...hmmm. AND just for old time sakes ... be sure to revisit our blog post from A MONTH AGO that relates to the article you're about to read now.
The future of electric rates
ElectriCities CEO: Rates likely won't increase -- or decrease -- in the next couple of years
By Rochelle Moore Times Staff Writer
Wilson Energy customers may not experience another electric rate increase for the next couple years.
Graham Edwards, the chief executive officer of ElectriCities, said the N.C. Eastern Municipal Power Agency, which sells electricity at wholesale to Wilson and 31 other cities, does not expect to increase rates for two years. Rates will be maintained due to economic growth in eastern North Carolina, which includes new industry and business, and efforts to control costs, he said. ElectriCities is the managing entity of NCEMPA.
"Our current projections are that our rates should be pretty stable for the next couple years," Edwards said, during a visit to The Wilson Times this week. "I really believe the story is improving in the eastern part of the state."
NCEMPA cities, including Wilson, purchase electricity from the public power agency at wholesale. The rates in each city are determined by elected leaders and can depend on a number of factors, including the cost to operate an electric system.
"That's good news since 80 percent of our cost is the cost of the power supply," said Fred Horne, director of utilities for the city of Wilson. "So, to hear that there's not going to be an increase in the next two years is good news."
Wilson Councilman Donald Evans, the city's representative on the NCEMPA board, said the city's electric rate would likely remain the same, if no increase is passed by NCEMPA. He does question, however, if the NCEMPA rate would be reduced if the cost of energy-producing fuels is reduced.
"If they don't give the city of Wilson a rate increase, unless we have an unforeseen expense, I don't see why we would have a rate increase because we can maintain our cost," Evans said.
Graham said he is not able to bring any changes that would reduce electric rates due to its $2.4 billion debt that's tied into NCEMPA's partial ownership in nuclear and coal-firing plants. The debt is set to end in 2026 and Wilson's share is about $379 million.
"This is the 900 pound gorilla," Edwards said. "There's nothing I can do to lower rates until the debt is gone. The rates can't come down until the debt is paid down or paid off."
Elected officials in the NCEMPA cities and ratepayers have asked for years, if not longer, what it would take to break ties with NCEMPA. Graham said that cities, including Wilson, would need to pay off their share of the debt before a disassociation with the public power agency can take place. The cities would then need to purchase their own electricity from NCEMPA or an investor-owned utility, like Progress Energy.
But Progress Energy is not interested, Edwards said, based on a discussion he had with Bill Johnson, president and chief executive officer of Progress Energy.
"If they bought them, the cost to their customers would go up," Edwards said. The discussion involved a purchase of the 32 cities' ownership share and debt service and not buyouts of a handful of interested cities.
ElectriCities staff have been working with member cities and offering education, marketing materials and other resources to help with residential concerns about the cost of electricity. Government-funded weatherization programs have been promoted as an answer to high electric costs.
Graham said the best ways to handle the cost of electricity are through energy conservation, economic development to share the cost of electricity, efforts of ElectriCities to reduce costs and local ordinances, including rules requiring landlords to make energy efficient improvements in between lease agreements.
"I think, it's got to be a collective effort with us trying to hold our costs down as much as we can, the city of Wilson holding its costs down as much as it can, consumers using as least amount of energy as they can and as good of an economic development program as we can," Edwards said. "To me, that's got to be the recipe for us going forward."
Article appeared in the Local News section of the WilsonTimes
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