Fairhope, Alabama
EFFECTIVE AUGUST 1
The city council unanimously passed an ordinance raising all base electric rates by "less than $2 per month" and establishing a new hospital rate classification.
Council president Burrell said base rates for residential customers would increase from $11.10 to $13 per month beginning August 1, 2021 ... then up another $2/month effective October 1st of 2022 and again in 2023 (for a final rate of $17/month).
Commercial, industrial, and others would increase similarly, but for this year only.
Burrell said the increases were to "keep up with the times" and bring the city's rates more into alignment with other utilities in the area like Riviera and Baldwin EMC; Fairhope's base rates will still be lower than those even after the increases, he added.
NEW HOSPITAL CLASS ADDED
Simultaneously, a new hospital rate classification was established, that would actually result in "less than what they are paying now," Burrell said.
Update: We asked Burrell why a new hospital classification was needed, but have not gotten a reply yet.
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| Electric Rate increase ordinance. |
Comments
Increasing rates is appropriate if the department is operating in the red, or requires additional funds for capital, and operations & maintenace. But using an excuse of "keeping up with the Joneses" isn't an adequate reason for raising rates for Fairhope residents.
A proper reason for increasing rates should be based on financial needs! Maybe a proper accounting review is due.
Many utilities have commercial and industrial rates that are initially less than residential consumer rates because businesses and industries consume larger volumes.
My only fear is what if they somehow won.
Step back and compare the Fairhope City Council, Mayor, and city workers to other cities.
Not perfect, but they could be many times worse. Believe me. I have lived in places where I finally quit caring
because the “public servants” were worthless top to bottom.