Five years after EPB introduced a pioneering bill payment option that sets a customer’s bill at the same amount every month, the city-owned utility is scrapping the plan.
The fixed-bill option is being phased out by April, EPB officials said, due to the volatility of fuel-adjusted rates from TVA combined with efforts to encourage more awareness about energy use.
“We’re winding that program down,” EPB President Harold DePriest said. “TVA scared the heck out of us two years ago with their rate increases and then last fall they went to monthly fuel-cost adjustments. I can’t predict where rates are going.”
He said the fixed-rate program also is contrary to the effort by EPB and other power utilities to make consumers more conscious about when and how they use power.
“We’re heading towards time-of-day rates with the idea of encouraging energy efficiency,” Mr. DePriest said. “Fixed bills are exactly the opposite. I don’t want to give up totally on the idea in the long run, but we’re going to have to tie it to some kind of energy conservation and perhaps helping let us manage consumer usage in the home.”