Huntsville Utilities to propose electric rate increase for customers

HUNTSVILLE, Ala. ( WHNT ) — Huntsville Utilities will propose a rate modification charge to electric customers at the Huntsville City Council meeting Thursday.

Huntsville Utilities said this rate modification would be a 5.3% increase over a 10-month period beginning in January 2025. It will be presented at the Huntsville City Council meeting on Thursday, Oct. 10 at 5:30 p.m.

HU said since 2020, material prices and the cost of construction projects have risen at least 30-40%.

The company provided some material price increases:

• Primary wire is up nearly 75%
• Insulators costs have risen over 85%
• Pole-mounted transformers costs jumped more than 180%
• Cost of PVC pipe has risen nearly 400%

“As a cost-to-serve municipal utility, we have been feeling the impact of cost increases for several years,” said Wes Kelly, CEO of Huntsville Utilities. “This rate modification is a last resort in response to those rising costs.”

With the approval of the city council, residential customers can expect a 3.9% increase in January 2025.

This includes a $3 increase to the Residential Availability Charge and a $0.00288 per kWh increase to the Residential Consumption Charge.

Starting in October 2025, there would be an additional Residential Consumption Charge of 1.3% increase which equates to a $0.00114 increase per kWh. Only customers with electric service greater than 200 amps will see an additional $5.55 increase to their Residential Availability Charge.

Out of the approximately 200,000 Huntsville Utilities residential customers, around 19,200, or less than 10%, have services greater than 200-amp.

Commercial customers can expect an increase of $3.00, $4.45, or $5.60 to their Commercial Availability Charge, and a $0.00288, $0.00416, or $0.00360 per kWh increase in the Commercial Consumption Rate.

Starting in October, there would be another 1.3% increase of $0.60, $0.89, or $1.12 in the Commercial Availability Charge and increases of $0.00121, $0.00139, or $0.00129 per kWh in the Commercial Consumption Rate.

HU provided graphics to help with these rates.

For the latest news, weather, sports, and streaming video, head to WHNT.com.