Pricier power on hold in East Point

By April Hunt

The Atlanta Journal-Constitution

A move that would add $4 to the average East Point electric bill has been delayed – for now.

City Council couldn’t reach a consensus on the increase, which is known as a "power cost adjustment." Staff  recommended the increase to recover costs of providing the utility.

Members hope a discussion at the June 1 work session will help settle the issue before they take up the 2011 budget, which takes effect July 1.

“Not only do we need to recover costs, we need to re-examine the costs,” said Councilman Myron Cook.

The increase would bring in about $1.8 million and would be used to cover the shortfall in what the city thought it would bring in selling its excess power on the open market.

This is the second year that the cost of power has exceeded the budget. Even with the adjustment, the city would face a $3 million deficit for the service.

City Manager Crandall O. Jones had suggested a larger increase to cover the full amount but reduced his recommendation to cover just this year.

An analysis by Electric Cities of Georgia showed the smaller increase translates to $4.16 more a month for the city’s average use of 832 kilowatt hours.

The proposal also includes a senior discount that would reduce bills for customers in good standing who are 65 and older. The $10-a-month discount would remain in place even if  revenues pick up and the adjustment is dropped.

Some council members say they support the adjustment because it will fund  long-delayed repairs and upgrades to the utility.

Others side with Mayor Earnestine Pittman, who has complained that it's unclear which projects would be funded.