GLASGOW – Glasgow Electric Plant Board residential and small commercial customers will see decreases in their monthly electric bills as of June 1, which is when a new electric rate structure will go into effect.
The GEPB board adopted the new rate structure last week during its regular session.
Josh Francis, chief technical officer for the power company, reviewed the rate structure during the meeting. A slide presentation showed residential rates will go from $31.97 to $25.54 a month.
“All time of use and coincident charges for those customers will go away,” Francis said. “There will be a flat rate that will be basically around 10.3 cents on average. It will be seasonal, so you will have a winter, a summer and a transition, so you will still have those charges, but the CPD (coincident peak demand) portion of that is gone, as well as the time of use component on and off peak.”
For small commercial customers, the rates will go from $56.61 to $42 a month.
“All time of use and coincident charges also go away,” Francis said.
The monthly charge per kilowatt hour for small commercial customers will be 10.6 cents.
Rates for medium and large commercial customers will remain unchanged.
Board Chairman D.T. Froedge commended Francis and Melanie Reed, interim superintendent, on how well they did in presenting the new rate structure and in explaining to Tennessee Valley Authority what GEPB wanted.
“It just about exactly does that. It doesn’t mess with the industrial rates. It lowers the tap-on fees, which is essential. From our discussion, it seems they are willing to drop this tap-on fee over a period of time to be a lower number, which I would like to see about $15, but right now $25 is an improvement,” Froedge said.
Reed said residential and small commercial customers will see a savings of about 4%.
Another slide showed what a bill for all four groups would be under the new rate structure. The bills were calculated on the monthly average use of 900 to 1,000 kilowatt hours.
For a residential customer, the monthly electric bill will go from $124.07 to $118.92, which is a difference of about $5.15 per month.
For a small commercial customer, the monthly electric bill will go from $200.37 to $191.78, which is a difference of about $8.59.
For customers who use less than 900 to 1,000 kilowatt hours, there will be a significant savings, she said.
“If you use more than that, you are going to see a possible increase, but on average you are going to see these reductions in the residential and small commercial customers,” Reed said.
TVA gave the GEPB and others who signed long-term power agreements a partnership credit. The GEPB chose not to pass the credit on to its customers, so the GEPB has been holding on to that money as a type of emergency fund.
“What they are doing here is just passing back not just the residential and small commercial portion, but the 3.1% in its entirety to the residential and small commercial customers with what we have to keep these medium and large commercial customers on the rates they are on now,” Reed said. “For now, this is a pretty good compromise.”
Froedge, again, told Francis and Reed that there efforts in negotiating the new rate structure were appreciated.
The GEPB is also receiving pandemic credits in addition to the partnership credits.
“Those (the pandemic credits) are not included here. Those we would still be able to keep for any future use we may have, including if we wanted to give more to community relief,” Reed said.
Froedge called for a roll-call vote to approve the rate structure. He and board members Glenn Pritchard and Marlin Witcher approved the new rate structure. Board member Libby Short was absent.
The board also discussed its search for a new superintendent.
Billy Ray, former superintendent, resigned/retired earlier this year as part of the terms established during a court-ordered mediation. Reed has been serving as interim superintendent.
Reed told the board the advertisement for the position has been prepared. She also told the board that the advertisement will be posted by the end of the week.