Clayton residential and business customers will not see an electric rate reduction from the Town of Clayton on November 1st.
The Town Council agreed to put off a vote on lowering electric rates at their Oct. 19th meeting for at least two more weeks to allow some council members more time to consider the proposed rate decrease.
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 said a rate reduction higher than 4.5 percent now could cause rates to have to go back up 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.