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| | Wednesday, April 27, 2016
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Newport Utilities electric rates expected to remain stable
Members of the Newport Utilities Board meeting Tuesday heard from consultant Chris Mitchell who pointed out that as solar power grows in popularity, there is reduced usage of utility power at certain times. But Newport Utilities must be prepared to meet the needs of peak power usage, even though it isn't always used. He suggested that in the future customer charges will have to be based more on peak demand and energy usage. According to Mitchell, billing and metering will have to be modified to reflect the new billing scenario. Newport Utilities already charges a higher rate for peak time usage, compared to non-peak periods. The utility is continuing to show a profit at a time when usage levels are increasing, and operating and maintenance expenses are increasing with inflation. Mitchell said local electric rates are in the mid-range of rates charged by TVA distributors, and as a result, the rate structure provides some insulation from sales volatility. "I don't see a need for a rate increase this year, and it is hard to predict, but you may need an increase in 2018," Mitchell told the board. General Manager Glenn Ray said a decision was made to install conduit in the concrete of the new Highway 25E bridge over Douglas Lake, for electric service. He said Engineer Jimmy Robertson was able to negotiate with TDOT to make the needed changes to the construction, within a 24 hour period. A dedication ceremony for the waterline to Grassy Fork Elementary School is planned for 10 a.m. on May 20. Planning for that project was begun 14 years ago. The newly installed sludge dryer in the wastewater treatment plant is expected to turn out dry sludge for agricultural use by May 16. Magellan Advisers continues too crunch data from a recent survey of the interest in local broadband and fiber service. A special workshop on the findings could be called for as soon as next week. And General Manager Ray said a feasibility study on a stand-alone wastewater treatment facility in Hartford is underway. Funds from the East Tennessee Development District are being used for that study.
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