Electric Department Board Approves Rate Increase

Electric Department Board Approves Rate Increase

Beginning October 1, all Carroll County Electric Department (CCED) customers will see an increase on their electric bills after the board of directors approved a 5% rate adjustment during their May 29 meeting.

The adjustment will impact all customer classes.

For residential and small retail service (SRS) customers, the change includes a $2.50 increase to the monthly customer charge and a $0.00411 increase to the per-kilowatt-hour (kWh) rate.

Additionally, GSA 1 customers will see a $2.50 customer charge and a kWh rate increase of $0.00471.
GSA 2 customers will see a $.00578 increase per kWh.
GSA 3 customers will have a kWh rate increase of $.00559.
Outdoor Lighting Class customers will see an increase of their kWh rate by $0.00375.

Electric Department General Manager Ryan Drewry said Carroll County Electric has been fortunate regarding rate hikes over the years.

“We’ve only increased our rates by about 2.05% over the last 10 years,” he said. “During that same time, TVA has increased [the rate we pay them] by over 14%.”

Drewry also explained that rising infrastructure costs and inflationary pressure are drivers for the increase.

He expects the rate increase to bring in about $1.8 million in additional revenue for the department, but half of it would go toward covering debt payments for the Leach substation project, with the remaining funds going toward other system improvements.

Drewry illustrated the inflation point by explaining that the Leach substation project would have cost $3 million in 2019, but is now projected at $7 million.

“That’s the kind of inflation we’re battling,” he said. “everything is more expensive.”

Board member John Austin acknowledged the difficulty of passing a rate increase but made the motion to approve it.

“Nobody likes an increase, but unfortunately, in the world we live in, we see it every day,” he said.

The motion passed unanimously.

Other Business

The board also approved an “excess generation power purchase agreement” with the Tennessee Valley Authority.

This agreement will allow TVA to reimburse Carroll County Electric Department for solar energy that flows back onto its system from the 6.5 megawatt solar farm in Trezevant.

Drewry said that while CCED would benefit more by using all of the energy that the solar farm produces, the agreement will guarantee that any excess power won’t result in a financial loss.

System Updates

Drewry also updated the board on the near-completion of the Silicon Ranch solar farm near Trezevant.

He played a video showing an aerial fly-over of the more-than 100 acre area filled with solar panels.

Drewry said it includes over 19,000 tracking solar panels.

He also reviewed progress on the Leach substation upgrades, which will help improve reliability of the power grid and support future growth.

Additionally, the board recognized Carroll County students who received TVA scholarships and uplift awards.

Anna Weatherford, daughter of Kelly Weatherford, was awarded the $4,500 Power Play Scholarship.

Hollow Rock-Bruceton Central Elementary and High School received $10,000 in funding from TVA through its School Uplift program on May 6.

Drewry also said that the new two-man bucket truck was delivered ahead of schedule on May 1.

He noted that the truck is near completion, and is just awaiting a few cosmetic upgrades.

The Electric Department’s next board meeting is scheduled for Thursday, June 26 at 2:30 p.m.