City to pay less for power it buys at wholesale rate

Published 5:44 pm Thursday, February 16, 2017

Good news for Washington might become goodness for at least some of Washington Electric Utilities customers.

The wholesale rate the city pays for buying power from Duke Energy will be reduced by 4.5 percent effective April 1, according to Councilman Doug Mercer, who delivered that message during the City Council’s meeting Monday. Mercer, who represents the city on the North Carolina Eastern Municipal Power Agency board, also said the city can expect a 3-percent increase in its wholesale rate in 2020, followed by another 3-percent increase in 2021.

“The power agency has a rate committee, and they meet periodically to make recommendations for rate adjustments as are necessary. Because of some reviews and some encumbrances … we have rebates which will take place over the next three years for over a million dollars. Based on that rebate from Duke, the rate committee has recommended, and it’s been approved by the power agency and the ElectriCities board, that there be a reduction in the wholesale rate of energy to 32 member cities of 4.5 percent effective April 1 of this year.”

Factoring in the proposed 3-percent increases in 2020 and 2021, Mercer said, “Basically, over that period of time, it will equate to about a 2.1-percent overall reduction in wholesale electric rates. We’ll past the information along to the Electric Advisory Committee so that they can make a recommendation on how we should address that potential (change) in the wholesale rates.”

That committee could recommend the city adjust its retail power rates to reflect the changes in the wholesale rate the city pays for power, which it sells to its customers at various rates, depending on their classifications.

In a related matter, Mayor Mac Hodges, during the council’s retreat Saturday, said he wants the council to consider decreasing the retail power rate by 2 percent for WEU customers in the city, if possible. The council would address that request during its upcoming budget sessions. Mercer wants the council to consider “zonal electric rates,” which would mean the farther a customer lives from the city, the more that customer pays for electricity because it costs the city more to deliver power to someone who lives 15 or 20 miles from the city.

Electric rates for residential customers, churches and small, general-service customers were reduced by 6 percent Aug. 1, 2015.

 

About Mike Voss

Mike Voss is the contributing editor at the Washington Daily News. He has a daughter and four grandchildren. Except for nearly six years he worked at the Free Lance-Star in Fredericksburg, Va., in the early to mid-1990s, he has been at the Daily News since April 1986.
Journalism awards:
• Pulitzer Prize for Meritorious Public Service, 1990.
• Society of Professional Journalists: Sigma Delta Chi Award, Bronze Medallion.
• Associated Press Managing Editors’ Public Service Award.
• Investigative Reporters & Editors’ Award.
• North Carolina Press Association, First Place, Public Service Award, 1989.
• North Carolina Press Association, Second Place, Investigative Reporting, 1990.
All those were for the articles he and Betty Gray wrote about the city’s contaminated water system in 1989-1990.
• North Carolina Press Association, First Place, Investigative Reporting, 1991.
• North Carolina Press Association, Third Place, General News Reporting, 2005.
• North Carolina Press Association, Second Place, Lighter Columns, 2006.
Recently learned he will receive another award.
• North Carolina Press Association, First Place, Lighter Columns, 2010.
4. Lectured at or served on seminar panels at journalism schools at UNC-Chapel Hill, University of Maryland, Columbia University, Mary Washington University and Francis Marion University.

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