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Huntsville Utilities proposing electric rate increase

HUNTSVILLE — Citing a rise in the cost of materials and construction projects, Huntsville Utilities is seeking a rate increase for its electric customers.

At Thursday’s City Council meeting, the utility plans to introduce a 5.3% increase spread over a 10-month period beginning in January 2025, according to a news release. The council meeting is 5:30 p.m.

Huntsville Utilities said material prices and vehicles and the cost for construction projects have risen at least 30-40% since 2020.

 

 

Price increases cited include:

  • Primary wire is up nearly 75%
  • Insulators costs have risen over 85%
  • Pole mounted transformers costs jumped more than 180%
  • Cost of PVC pipe has risen nearly 400%

“As a cost-to-serve municipal utility, we have been feeling the impact of cost increases for several years,” said CEO Wes Kelly. “This rate modification is a last resort in response to those rising costs.”

With council approval, residential customers can expect a 3.9% increase in January 2025. This includes a $3 increase to the Residential Availability Charge and a $0.00288 per kWh increase to the Residential Consumption Charge.

Starting in October 2025, there would be an additional Residential Consumption Charge of 1.3% increase which equates to a $0.00114 increase per kWh. Only customers with electric service greater than 200 amps will see an additional $5.55 increase to their Residential Availability Charge.

Commercial customers can expect an increase of $3, $4.45, or $5.60 to their Commercial Availability Charge, and a $0.00288, $0.00416, or $0.00360 per kWh increase in the Commercial Consumption Rate.

Next October, there would be another 1.3% increase of $0.60, $0.89, or $1.12 in the Commercial Availability Charge and increases of $0.00121, $0.00139, or $0.00129 per kWh in the Commercial Consumption Rate

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