CCU Commission Approves Electric Rate Adjustments
by Megan Wylie
In its meeting on Monday, June 3, the Clarksville Connected Utilities (CCU) Commission voted to accept electric rate adjustments proposed by Roy Young, interim general manager, which will take effect Oct. 1 if approved by the Clarksville City Council. Adjustments will affect the electric kilowatt-hour (kWh) rates, kilowatt (kW) demand rates, meter charges, connection fees and powerline extension fees for all CCU electric customers.
Using the South Urban Unadjusted Consumer Price Index (CPIU) as published by the Bureau of Labor Statistics, the October rate adjustments will be based on the annual amounts reported in June of the most current year, not to exceed four percent. If the CPIU declines during the previous calendar year, the rate adjustment will be zero percent. The Commission will be authorized to regulate the adjustment percentage annually at a percentage at or below the published CPIU increase if the retained earnings of the utility remain at a reasonable and sustainable amount based on its annual budgetary projections.
Two new commercial rate categories based on power consumption were added to the rate structure. The new categories are “commercial with demand 50-150 kW” and “commercial with demand 151-500 kW.” The utility will consider monthly power demands for each commercial and industrial account to determine which demand category the customer will be assigned to. Category placement will be based on the power demand threshold reached in at least six months of the previous fiscal year. The six-month thresholds may be reached in non-consecutive months.
Based on the current CPIU, CCU’s residential customers can expect a six percent per kWh increase, and commercial without demand and industrial customers can expect a 2.5 percent increase beginning in October 2024 with rate reviews taking place each subsequent year in October.
“Meter charges” will also replace the current “customer charge.” Young stated customers are currently charged one “customer charge” whether they have multiple meters or just one. He proposed charging customers per meter. “It’s not fair for rate payers to pay for us to maintain other people’s meters,” he said.
To read the full story see the June 4 edition of The Graphic, found online or in businesses throughout Johnson County.
