Clarksville Council Approves New Electric Rates
by Janice Penix
Following a lengthy discussion, members of the Clarksville City Council approved new electric rates for city utility customers during their monthly meeting Monday, Oct. 14.
Aldermen approved an ordinance establishing new electric rates for residential, commercial and industrial customers of Clarksville Connected Utilities (CCU). The ordinance was not included on the published agenda, but the item was added at the beginning of the Council meeting by a unanimous vote of the aldermen.
Jason Carter, attorney representing CCU, outlined for the Council the changes in rate structure that are included in the new ordinance and explained the reasoning for the changes, to assist CCU in becoming more fiscally sound.
The existing rates do not provide ample revenue to meet rising costs and losses the company has experienced over the past few years, he said.
“CCU has insufficient rates, and you are the rate authority,” Carter said. “We are bringing a solution, at least for the short-term. You have contracts with rate covenants, that state you will operate the utility with rates sufficient to cover your expenses, and not in the red. This (rate proposal) is not based on a rate study, because a rate study takes time. The utility’s board wanted to try to solve the problem with a patch right now and continue to look for those long-term solutions.”
The new rate structure includes a $10 per month increase in the base customer charge for residential customers, from $10 to $20 per meter; a $20 increase in base charge for single-phase commercial customers, from $20 to $40 per meter; a $50 increase in base charge for three-phase commercial customers, from $50 to $100 per meter; and a $250 increase for large commercial/industrial customers, from $250 to $500 per meter.
The ordinance also requires CCU to maintain a copy of all its rates and charges on its website in a manner available for public inspection.
It also establishes new fees for wastewater discharge permits and wastewater contribution permits which do not exceed the costs incurred by CCU to provide the services. The wastewater fees will be added to the list of existing fees CCU levies for various services.
New provisions were also established in the ordinance for electric connection and reconnection fees. Residential fees will be $450 for 200-amp service and $800 for 320-amp service, while commercial/industrial fees will be $800 for 320-amp service and $950 for CT-metered service.
Alderman Rob Risinger said he believed the requests from CCU were reasonable.
“I have attended some of the recent CCU meetings, and I was shocked at some of the costs CCU has incurred they have not passed along to the customers,” he said. “You’ve done a lot of work, and I applaud you for the work. I know you’ve put in a lot of hours preparing this.”
Mayor David Rieder agreed.
“It’s not egregious,” he said. “They’re just trying to keep things afloat.”…To read the full story, see the Oct. 16 edition of The Graphic, found online and in businesses throughout Johnson and Franklin counties.
