Clayton residential and business customers could see an electric rate reduction from the Town of Clayton.
An electric rate study was presented to town officials on October 5th by Andrew Givens with Cardinal Energy Service, Inc. of Raleigh. The study was in response to a reduction in Clayton’s wholesale power costs as a result of the sale of power generating assets of the NC Eastern Municipal Power Agency. Clayton is among the 32 members of the agency.
The report recommended an across the board 4.5 percent rate reduction for all town customers effective in November. Without the wholesale power rate decrease this summer, Givens said the Town would have needed to actually have raised rates from 2 to 5 percent.
The rate study indicated power costs would continue to increase. Currently, wholesale power costs are projected to increased by over 10 percent by 2019.
Givens did not recommend a rate reduction more than 4.5 percent because a rate increase would be required within 12 to 18 months.
The proposed 4.5 percent rate decrease would not apply to lighting rates and municipal rates.
A current Town of Clayton electric customer who uses about 1200 kwh per month is now paying $160.91 plus a base charge of $6.95. If the rate decrease is approved their bill would be lowered by $9.75 per month, or $177 on average a year. A 2000 kwh per month customer would see a rate reduction around $13.00 a month or about $156 a year.
The Clayton Town Council could vote on the electric rate decrease as early as their Monday, Oct. 19th meeting.