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Huntsville Utilities Announces Lane Closure and Rate Increases

Urban highway maintenance with traffic cones

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News Summary

Huntsville Utilities has announced a lane closure on Memorial Parkway starting Tuesday at 8 a.m. due to maintenance work. The inside lane of the southbound access road will be closed for 3 to 5 hours. Additionally, proposed rate increases set for January and October 2025 aim to address rising operational costs amidst inflation, potentially affecting residents’ utility bills.

Huntsville Utilities Announces Important Lane Closure and Proposed Rate Increases

Residents of Huntsville, it’s time to take note! Our local utility provider, Huntsville Utilities, is moving forward with some maintenance work that will affect traffic on a part of Memorial Parkway. Starting this Tuesday at 8 a.m., the inside lane of the southbound access road will be closed. The closure affects the stretch between Don Mincher Drive and Southpoint Park Circle, which means if you’re planning to head that way, you might want to find an alternate route.

Attention Drivers!

For those who must travel through the area, caution is key! It’s expected that the maintenance will take around three to five hours, and there will be workers present. The closure also impacts the U-turn lane underneath the overpass, making it more critical to steer clear if you can!

Proposed Rate Increases on the Horizon

What to Expect in 2025

Here’s what the proposed rate increases look like:

A 3.9% increase set to take effect in January 2025.
A subsequent increase of 1.3% planned for October 2025.

Most residential customers will see their availability charge go up by $3, bringing it to $17.23 a month. Additionally, a consumption charge increase will come into play, where the cost will rise by $0.00288 per kilowatt-hour starting in January and then climb again in October by $0.001114 per kWh.

Those with homes wired for over 200 amps will face a more significant change, with their availability charge set to reach $22.78 per month.

Concerns from the Community

One area of concern highlighted by local councilors is that this proposed availability charge is viewed as regressive. This means it could disproportionately impact lower-income customers, who may already be struggling with their monthly bills. Despite having added 25% more customers over the last decade, energy sales have actually dipped 2% when compared to levels in 2013.

Operational Costs and Future Impacts

At the current moment, the operating and maintenance costs for the utility sit at around $25.02 per customer for 2023. Interestingly, TVA’s electricity rate structure makes up about 80% of what a customer pays. Even though Huntsville Utilities has faced numerous expenses and has been reluctant to pass these costs onto customers, the pressure is on as they also recently raised prices related to new construction.

As it stands, the request for rate increases has been tabled by the council until their meeting on October 24. Without the approval of this request, potential cutbacks on maintenance and expansion projects could impact operations moving forward, leaving residents and businesses alike to question the future of their local utilities.

Keep your eyes peeled for updates from Huntsville Utilities as they navigate this important time for our community!