The cost for electricity in the Clayton city limits could be going up on June 1st.
The Clayton Town Council will hold a public hearing on Monday night, May 21st on a rate study from a consultant that has recommended a 3.1 percent increase in electric rates beginning June 1st.
The proposed rate increase is driven by two forces: the rising cost of electricity, which the Town of Clayton buys wholesale from Duke Energy, and the rising cost of maintaining the distribution system and staff required for a hometown public power company.
Tasked with managing those rising costs in a responsible way, the Town hired an outside consultant to recommend how best to sustain the system, while also working to offset the burden of increased wholesale power costs and minimize the impact on our residents.
The electric base rate, which helps pay for fixed costs like trucks, fuel, power poles and electric crews, has been at $6.95 for the last two decades. Those fixed costs have long surpassed the $6.95 base rate. For example, the Town of Smithfield charges a base rate of $11 and Wake Forest $15.95.
The study recommended Clayton’s base rate increase from $6.95 to $12.75 per month.
The per-kilowatt price for electricity would decrease from 12.180 to 11.967 cents.
If approved by the town council on May 21st, the average Clayton residential power customer would see their bill increase $4.37 per month or about 15 cents a day.
The Town of Clayton has been providing power to residents since 1915, when the towns first electric street lamp was switched on.
