GRU Proposes Lower Electric Rates, Increasing Sewer, Water and Gas
Gainesville Regional Utilities wants to cut most residential electric rates and hold business rates steady next year – the first step toward the Gainesville City Commission’s goal to become more competitive.
“As other utilities increase their rates, it will bring us closer to their level,” said David Richardson, the interim chief financial officer.
GRU expects to receive help in controlling rates from $10 million it would receive under a settlement that Duke Energy has agreed to – subject to regulatory approval – to compensate for decommissioning the Crystal River Nuclear Power Plant.
GRU owned a fraction of the Crystal River plant, and Duke plans to compensate it and other utilities with partial ownership for the loss of the plant’s low-cost power generation, Richardson said.
GRU’s proposed budget for the next fiscal year, which begins October 1, calls for using $5 million from the Crystal River settlement next year and $5 million in the 2017 fiscal year.
GRU delivered the proposed budget to the commission on Wednesday, July 1, and the commission will hold hearings beginning July 13.
Rates for most other GRU services would rise under the proposed budget. Based on the industry standard for comparing average rates, GRU is proposing the following:
- Residential electric customers using 1,000-kilowatt hours of electricity would see a $4.25 decrease monthly, to $136.25 from $140.50.
- Customers using 7,000 gallons of water would face a $1.35 increase, to $28.40 from $27.05.
- Sewer customers using the 7,000-gallon benchmark would pay $2 more, to $52.75 from $50.75.
- Natural gas customers using 25 therms would incur a 95 cent increase, to $32.14 from $31.19.
Business customers in all rate classifications would see no change in electric rates under the proposed budget.
The proposed increases in water, sewer and natural gas rates are due to increased operating costs, including the Paynes Prairie Sheetflow Restoration Project, which improves the quality of water discharged from the Main Street sewer plant, Richardson said.
The fuel adjustment for natural gas would remain constant.
“We will maintain one of lowest natural gas rates in the state,” Richardson said.
The net effect for the benchmark customers – who use GRU for natural gas – would be paying a nickel more next year.
GRU staff has kept the commission involved in budget discussions throughout the year.
“We hope we’re close to what the commissioners want,” Richardson said.