Electricity rates could be on the in Troy

Published 12:00 am Thursday, September 27, 2001

Staff Writer

Residents in the city of Troy may be paying more for electricity in the near future.

When the Troy City Council adopted the $30.8 million budget for the 2001-02 fiscal year, it included allotment for a rate increase for electricity, but that final decision has not been made.

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Tuesday night, the council had the first reading of an amendment to the ordinance that would increase rates by just about three-tenths of a penny.

Troy Mayor Jimmy Lunsford said the "small increase to electric rates" is needed to offset costs, such as substations and lines.

It has been over five years since the city has increased its electric rates.

"We are by no means approaching the cost of electricity in other areas," Lunsford said.

He said the average will be about a 4-percent increase and "other than that, your minimum usage stays the same."

According to a comparison Lunsford presented to the council, Troy’s electricity is still almost 20 percent cheaper than what Alabama Power Company charges.

Someone who used a total of 1,594 kilowatts per hour, would have paid $100.64. Under the proposed new rate, that individual will pay $105.42 to the city of Troy. That same amount would cost Alabama Power Company customers $123.83.

A customer using 1,497 kilowatt hours would have paid $94.82 under the old rate and $99.31 under the new rate while an Alabama Power Company customer would pay $119.32.

Lunsford said he did not think it was fair to compare the city’s rates to the South Alabama Electric Cooperative. He did, however, point out the Co-op’s rates are higher.

The Troy City Council will consider the rate increase in October.