Union City, Tenn.–Union City Energy Authority CEO Jerry Bailey announced today that effective on all bills processed after October 1, 2018, UCEA’s electric rates will increase an average of 3.0 %.
Bailey said, “This rate increase is necessary to help offset inflation and continued price increases in the materials and equipment we use to maintain the system’s reliability.” He also noted that it has been nine years since the last increase in the margin of the local utility, a 3% increase in December, 2009.
The rate change will mean an increase to residential customers in the customer charge of $3.20 per month with a slight increase in energy costs. Commercial and industrial customers’ rates will increase based on their energy and demand use patterns. Bailey said, “Even with the increase, Union City Energy’s rates continue to be among the lowest in the Tennessee Valley Area”.
“The Tennessee Valley Authority, our energy supplier and regulator, performed a study by rate class to insure all classes of customers were paying their fair share of the cost to provide service. Our rate change reflects a portion of that correction as approved by TVA.” Bailey said.
Bailey also noted the system strives to maintain rates as low as reasonably possible but at some point an increase is necessary to maintain a financially and physically sound power system. “We hope this rate increase will be the only one needed for several years,” he said.
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