Huntsville City Council to Discuss Proposed Electric Rate Increase on October 10

Huntsville Residents Prepare for Proposed Electric Rate Increase

Huntsville, Alabama – We have some important news that could affect your electric bill starting next year. Huntsville Utilities is gearing up to present a proposed rate modification charge during the City Council meeting scheduled for Thursday, October 10. If approved, this could mean a noticeable 5.3% increase over a ten-month period beginning in January 2025.

What’s Behind the Increase?

According to Huntsville Utilities, the proposed rate hike is primarily due to escalating costs that they’ve been facing since 2020. The prices of materials and the expenses associated with construction projects have surged by 30-40% in recent years. Wes Kelly, the CEO of Huntsville Utilities, expressed the sentiment that this adjustment is a necessary step to keep the utility sustainable. “As a cost-to-serve municipal utility, we have been feeling the impact of cost increases for several years,” said Kelly. “This rate modification is a last resort in response to those rising costs.”

The Breakdown of the Proposed Charges

If the Huntsville City Council does give the green light, here’s what residential customers can expect:

• A 3.9% increase in electric charges starting in January 2025.
• A flat $3 increase to the Residential Availability Charge.
• An added $0.00288 per kWh increase to the Residential Consumption Charge.
• From October 2025, an additional 1.3% increase to the Residential Consumption Charge will kick in, equating to $0.00114 increase per kWh.

Furthermore, around 19,200 customers—that’s less than 10% of the 200,000 residents served by Huntsville Utilities—who have electric services greater than 200 amps will see a larger adjustment, specifically an increase of $5.55 to their Residential Availability Charge.

Commercial Customers Will Also See Changes

Business owners, don’t think you’ll escape a rate increase either! Huntsville Utilities plans to implement hikes for commercial customers, which could look like the following:

• Increases ranging from $3.00 to $5.60 to the Commercial Availability Charge.
• Consumption rates will also see an uptick, which could be $0.00288, $0.00416, or $0.00360 per kWh increase.
• Starting in October, there would be an additional increase of 1.3% in the Commercial Availability Charge.

So, whether you’re a residential customer or operate a business in Huntsville, it’s crucial to stay informed about these potential changes.

Stay Tuned for City Council Meeting

The City Council meeting at 5:30 p.m. on October 10 will be the moment of truth, where Huntsville Utilities will lay out their case for this proposed rate modification. It’s a chance for residents and business owners to engage, ask questions, and share their thoughts on this necessary adjustment.

With the cost of living continuing to fluctuate, keeping an eye on changes in utility rates is always wise. For many Huntsville residents, this upcoming increase could mean a few extra bucks added to monthly electric bills, so it’s worth your time to check out the meeting and stay in the loop.