Selma Approves Electric Rate Hike For Residential, Commercial Customers

SELMA, N.C. – Town of Selma residential and commercial customers will soon pay more for electricity after the Town Council unanimously approved a rate increase that takes effect in May.

The increase raises residential rates by about 5.2 percent and larger commercial rates by roughly 8 percent. Public Utilities Director George Shook recommended the adjustment to offset a 4.1 percent wholesale increase from the North Carolina Eastern Municipal Power Agency that took effect April 1.

Interim Town Manager Phillip McDaniel said a typical residential customer using 2,000 kilowatt-hours per month will see an increase of about $8.60. He noted roughly 90 percent of Selma’s utility customers are residential.

Under the new structure, Selma’s residential single-phase base charge will increase from $16 to $21 per month, a 31.25 percent increase, while three-phase service rises from $27 to $33, a 22.22 percent increase. The per-kilowatt-hour rate will increase slightly from $0.11 to $0.1118.

Even with the increase, Selma’s rates remain largely in line with — and in some cases below — neighboring towns.

A comparison of local municipal utilities shows Benson’s residential customer charge is about $26 per month, higher than Selma’s new $21 rate, while Clayton’s base charge is around $21 and Smithfield’s is closer to $13.

Energy rates also vary across the region. Clayton customers pay roughly 12.19 cents per kilowatt-hour on average, compared to about 11.18 cents under Selma’s new rate.

In Benson, recent rate changes approved in March are expected to raise typical residential bills by more than $16 per month for average users, reflecting similar cost pressures faced by municipal systems.

Across North Carolina, municipal electric systems generally fall in a range of about 10.5 to 13.5 cents per kilowatt-hour, placing Selma near the lower end of that spectrum even after the increase.

By comparison, investor-owned utilities are often higher. Duke Energy Progress customers in eastern North Carolina average about 12.4 cents per kilowatt-hour, while Dominion Energy customers average around 13.5 cents.

Commercial customers in Selma will also see adjustments. Small business base rates will increase from $30 to $37 (up 23.33 percent), while medium commercial base rates rise from $65 to $85 (up 30.77 percent). Large commercial base rates will see the most significant jump, increasing from $200 to $500 (a 150 percent increase). Their per-kilowatt-hour rates have varying increases.

Mayor Byron McAllister said the town is facing the same challenges as utilities across the state.

“Utility rates are going up everywhere,” McAllister said, noting at least one nearby community has faced financial strain after delaying increases. “5.2 percent isn’t bad, it isn’t great, but it’s the cost of doing business.”