Your Huntsville Utilities electricity rate is going up soon

The Huntsville City Council voted Thursday to approve the rate hike.

Posted: Oct 11, 2018 11:20 PM
Updated: Oct 12, 2018 3:41 PM

The Huntsville City Council voted 4-1 Thursday to raise your Huntsville Utilities electricity bill starting in 2019, which is the second rate increase in two years. 

City Council members were choosing between three options and chose option 2, which is a $1 dollar increase to your monthly flat rate every year for 5 years. Several City Council members said they like that option, because it provided the most predictability and stability for customers.

On January 1st, 2019, your monthly flat rate electricity bill will go up from $9.17 to $10.17 and because the fiscal year for Huntsville Utilities starts on October 1st, your bill will also go up another dollar to $11.17 on October 1st, 2019. It will then go up by a dollar every October 1st through the year 2023.

Huntsville Utilities said they need this rate increase for several reasons. The first is because the Tennessee Valley Authority is changing their billing structure slightly, which this addresses. They also said they need money to update technology like the planned move to new digital meters on the side of your house.

"We can learn from them, so that five years from now we come back with more data, a better understanding of our customers usage pattern, look from our industry peers, and hopefully set up long term rate structures that benefit the customer and the utility," said the President and CEO of Huntsville Utilities, Wes Kelley.

This rate increase still needs final approval from TVA, but Huntsville Utilities has already gotten this option initially reviewed and expect TVA to approve it.

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