City Gets Results of Rate Study

The Monticello City Council met April 7 to hear presentations from representatives of Electric Cities of Georgia (ECG) on the city’s electric rates and on the rates for water and sewer.

Katrina Bond began with the water and wastewater cost of service, explaining that the cost of service (for all services) includes personnel, operations, supplies, depreciation, debt service and transfers. The representatives had obtained Monticello’s actual billed rates and revenues. Her presentation showed that water is losing a half a million dollars a year. She recommended adjusting the rates to having different rate classes, and said if the city authorized her to do the work she could complete it in a couple weeks.

The different rates would reflect actual usage, but there would be a rate for those who use a lot of water that does not become wastewater…like watering lawns, washing cars, filling pools, etc. There would be separate rates for different users, and she did not present that at this time. She did point out the city is losing money on commercial and government wastewater use.

Currently in the city, sewer rates are based on water usage, and many people complain that’s not fair.

Wastewater currently is showing a positive balance overall, but that is partly because the cost of services are born by the water department. Currently the water department employees are all listed in water, not sewer, so neither accurately reflects where the money is spent.

She suggested that water would have a PCA (power cost adjustment) just like electricity does. She also indicated that it would be feasible to raise the rates over a few years rather than all at once, hitting the users with a significant change.

Then those gathered (all of council, some staff members, and some members of the public) heard from Sarah Leonard on the electric rates. It showed that electric rates reflect a small profit, which has been used typically to offset those departments which are losing money.

Currently the city has separate rates for those electric customers who are outside the city limits. She recommended doing away with that. She recommended a rate schedule that would be residential and commercial non-demand; commercial demand, creating a year-round rate without a seasonal change, and to create an industrial rate. She recommend reducing the power cost adjustment with the PCA revenues rolled into the rates.

In her presentation, she compared Monticello’s rates with those of other providers, and the city’s rates were actually the lowest. It also showed that the city is losing money on residential rates.

Mrs. Leonard had some draft rates, but said it would take about a month to have a complete recommendation.