Pikeville residents facing higher bills
By Laura Collins
Published in News on June 10, 2010 1:46 PM
Starting July 1 Pikeville residents will see a slightly higher electric bill.
In response to a rate increase from ElectriCities, the Pikeville Board of Commissioners voted in January to increase the electric rate 7 percent beginning in July.
Currently the rate per 1,000 kilowatts of electricity is $135.90. The average home uses about 1,500 kilowatts of electricity, meaning the average electricity bill in Pikeville is about $203.85. Starting in July, the new rate will be $145.40 per 1,000 kilowatts of electricity, about $218.10 for the average user. That's an increase of $14.25 per month, or $171 annually, for customers who use 1,500 kilowatts each month.
"It could have an impact on some people because we still, as we all know, are in a recession," said Town Administra-tor Kathie Fields.
When the audit report on the town's finances was completed, it showed that the town was not meeting the revenue bond requirements, which says the town has to have 120 percent of the payment, about $81,000. Last year, the town did not meet that requirement, partially because of ElectriCities increases the town did not pass on to the residents, Ms. Fields said.
"To meet our revenue bond this year, it would take that 7 percent to get us where we need to be," she said.
The Local Government Commission and Branch Banking agreed that the town could meet only 100 percent for fiscal years ending in 2009 and 2010, about $67,500, but the town is again required to meet 120 for the fiscal year beginning in July.
Other than the electric rate increase, which is not part of the proposed budget since it was already approved in January, Pikeville residents should not see any other tax or utility rate increases for fiscal year 2010-11. The monthly water tower maintenance fee will increase from $2 to $3 if the budget is approved for July.
The budget will be open to the public beginning Friday and will be posted at town hall. There will be a public hearing on the budget June 22.