News Talk 94.1/AM 1600 Where The Upper Cumberland Talks
Sparta adjusted the electricity rates in order to update infrastructure in the coming fiscal year.
Chris Dorsey is the City Administrator.
Dorsey said increasing the rate benefits the city by paying for various updates. The rate increase will also help pay for employee benefits, Dorsey said.
“Basically we do that every year but of course, you know, buying a utility pole this year may cost a little bit more than buying that same utility pole last year,” Dorsey said. “All that goes up. And of course, benefit costs go up for employees, whether that is the insurance costs or salary or things of that nature. ”
Dorsey said, one update will add automated metering.
“With the automated metering, it will literally, by radio waves and frequencies, it will send the information to collectors,” Dorsey said. “Which immediately go back to our servers, so we don’t have to have anybody walk the routes on electric to read the meters.”
The automated metering costs approximately six hundred thousand to seven hundred thousand dollars, Dorsey said. The project expands to both this fiscal year and the next, Dorsey said.
Sparta adjusts the electricity rates each year, Dorsey said.
“One of the things we have been doing is we have been increasing the fixed rate that we charge to customers,” Dorsey said. “And at the same time, we have been reducing the kilowatt hour rate that we charge customers so that it stays the same price.”
Along with rate changes within the city, TVA also suggests rate increase to match inflation.
This fiscal year, TVA suggested a .48 percent increase in the rate. Dorsey said Sparta puts the .48 percent on the kilowatt-hour rate at a minimal increase.
“We take that and put it against the kilowatt hours. And the reason you do that is your electric bill may spike in the summertime if it is a hot month and you are using your air,” Dorsey said. “Well by us putting more of the emphasis of the bill on the flat rate, that helps us get rid of some of those peaks in values in your bill. And we think that helps the customer to have a more stable bill every month. I mean, a very, very, very minor electrical increase.”
The rate changes will take effect in the coming fiscal year.
