DALTON, Ga. — Dalton Utilities, which already boasts having some of the lowest electric rates in the South, will defer some of its planned maintenance and use its investment earnings again next year to help avoid increasing all but its base fees for electric power.
“Cost pressures on everybody are increasing, but we agreed to cut our capital spending plans and to do what we could to avoid a general rate increase given the economic condition of our customers,” Dalton Utilities’ President Don Cope said.
The city’s Board of Water, Light and Sinking Fund on Monday approved a $195.6 million budget for 2011 that avoids any marginal rate increases but raises consumers’ base fees for electricity, natural gas, water and wastewater.
Under the new budget, electricity and gas bills each will rise by $3 a month in January. The monthly base rates for water and wastewater treatment will go up $1 a month in January.
The result is that consumers using all Dalton Utilities’ services will pay another $96 next year in monthly base fees. But Cope said such fees had not been increased in several years and still are below most comparable utilities.
A survey of electric utilities this year by the Georgia Public Service Commission indicated that residential electricity rates for the typical household served by Dalton Utilities were 12 percent below the statewide average in Georgia.
BY THE NUMBERS$195.6 million Revenues projected for 2011 for electricity, natural gas, water, wastewater, stormwater and telecommunications services offered by Dalton Utilities$7.5 million Investment earnings applied to budget to avoid most rate increases$20.3 million Remaining debt that will be paid off in the next year$3 Extra monthly base fee for electricity and extra monthly fee for natural gas, per customer$1 Extra monthly fee for water and extra monthly fee for wastewater treatment, per customerSource: 2011 Dalton Utilities budget
“Every survey we look at shows Dalton has the cheapest electric rates anywhere in the region,” Dalton Mayor David Pennington said. “Obviously, when you are dealing with huge electrical load users like the carpet industry, those low rates give us a tremendous advantage in keeping industry and hopefully growing industry here.”
Cope said the utility has cut its staff from 325 employees to 298 employees over the past two and a half years. Workers will be eligible for up to a 5 percent performance bonus in 2011, but overall wage gains will be 2 percent or less, he said.
Workers did not get bonuses or pay raises last year.
Rhonda James, the utility’s finance director, said Dalton Utilities has dipped into its reserves in previous years to avoid rate increases and will use $7.5 million of investment earnings from its reserves next year to help pay off its remaining $20.3 million of debt.
With no long-term debt after 2011, the utility should have at least another $20 million a year freed up for operating expenses, Cope said. However, it will continue to absorb its 1.6 percent share of the construction for the Units 3 and 4 at the Vogtle Nuclear Plant near Waynesboro, Ga.
The new budget includes $2 million for stormwater services, provided Dalton funds the projects.
Pennington said the city expects to be able to pay for one of the two detention ponds Dalton Utilities has proposed to build on the west side of Interstate 75 to help control flooding and stormwater runoff problems on the city’s west side.
Contact staff writer Dave Flessner at dflessner@timesfreepress.com or 423-757-6340.