PENDLETON — Residents could soon see the first rate increase in their electric bills in a decade.
High gas prices, inflation and the rising cost in the generation of electricity are all factors in the potential increase, according to Buzz Krohn of Krohn and Associates, the town’s consulting firm.
During Thursday’s meeting of the Pendleton Town Council, details of the rate hike were mulled over by council members.
Krohn proposed a two-phase rate hike beginning with an 8.5 percent increase and followed by a 2.5 percent increase within the same year.
Overall, by the end of 2009, Pendleton residents could be paying 11 percent more for electricity than they do now.
Currently, Pendleton power customers pay a $5.86 base charge each month and 8 cents per kilowatt hour for the first 600 kilowatt hours. Beyond 600 kilowatt hours, the rate sinks to 7 cents.
According to the proposed schedule of rates, residents would pay $6.36 in phase one, leading up to $6.52 by phase two.
The rate would jump to 9 cents per kilowatt hour and then 10 cents in phase two.
Council president Donald Henderson said the rate hike was unavoidable.
“It’s one of these things that comes about from time to time out of necessity,” Henderson said Thursday. “Everything’s just more expensive now.”
Council members had previously deferred a rate hike, Krohn said.
“With the increased cost of fuel and wholesale on power, there is no question: It’s time to do it,” Henderson said after hearing the proposal.
Krohn said consumers should not expect to see rates falling anytime soon.
“Energy costs are at an all-time high,” Krohn said, “and it doesn’t look like it’s going to come down.” Even coal and fossil fuels are on the rise, he said.
In addition to the proposed increase, Krohn recommended that the council plan on increasing the electricity rate every three years in accordance with the current trend.
The first reading of an ordinance was approved by the council, and a public hearing on the issue will be held at 6 p.m. Oct. 2 at Town Hall.
If the council approves the rate hike at the Oct. 2 meeting, the new rates could be reflected in utility bills as early as November.
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In other council news: Council members approved an amendment to a salary ordinance setting a $29 per hour maximum salary for the assistant director of the planning department.
Local News
9:32 p.m.: Pendleton Council mulls rate hike
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