POWER STRUGGLE: Senator Thinks Lower Bills Possible

The state senator who is co-chairing a legislative committee looking into the high utility rates charged by ElectriCities says he believes it's possible for legislative action to lower the bills of those customers. ElectriCities serves 32 municipalities in Eastern Carolina.

Senator Buck Newton (R-Wilson) spoke to Heather King on WITN News at Sunrise Friday in an exclusive live interview.

"There's a lot of reason to be hopeful," Senator Newton said. "If we can find the right formula that we agree is the right formula, then I think we can get something done."

The formula Senator Newton speaks of is finding someone to buy some of ElectriCities assets in three nuclear facilities. The investment made decades ago has not paid off the way the utility hoped, and the massive debt gets passed on to customers every month in the form of higher utility bills.

Newton said it would be difficult to find a buyer interested in those assets.

The first meeting of the Municipal Power Agency Relief subcommittee was Tuesday in Raleigh. Newton says the committee plans to meet again in January with two more hearings planned after that.

When asked how long it could take before customers could see lower bills, Newton said it would be at least a year. "And that's if everything goes just right. We may be several years away, but that doesn't mean we shouldn't be working on it," Newton said.

Once the committee completed its work and introduced legislation to lower bill of ElectriCities customers, the committee's focus would shift to convincing enough members of the General Assembly to supporting the measure. "I think those that understand the problem will be behind it," Newton said. "People not in this area aren't familiar with the problem. This is suffocating our economy."

WITN will continue to cover the work of this legislative committee and its potential impacts for Eastern Carolinians.

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Tuesday marked the first of what will be at least two meetings of the Municipal Power Agency Relief subcommittee in the state capitol. Customers vented their frustrations and demand action.

Many residents and business owners in Eastern Carolina are dealing with outrageous power bills.Tuesday was a first step in trying to do something about them, specifically the rates for those in the 32 municipalities that make up the North Carolina Eastern Municipal Power Agency, managed by ElectriCities.

One by one, business owners approached the podium inside the legislative office building Tuesday in Raleigh.

"We've had industries leave Wilson like Mother Buttercup and and Lynnpack and they diplomatically said we cannot compete in the industries we're in with Wilson electric rates,"
said Billy Lamm of Lamm & Company Partners in Wilson.

It's the same story for residents struggling with astronomical bills.

The subcommittee is charged with trying to gain a better understanding of how to lower electric rates.

"When you have a community like Wilson, Rocky Mount, New Bern, or Greenville, and you have millions and millions of dollars being sucked out of the economy month after month after month, year after year- it takes its toll." said Sen. Buck Newton, (R) Subcommittee Co-chair

Thomas Joyner is president of Nash Produce. He says he's paid several bills that were more than $100,000 to the City of Rocky Mount. When he expanded his property, he decided to get power with Progress Energy--who had lines nearby.

"My rate to the city of Rocky Mount is 11.6 cents, my rate to progress energy is 6.6. Had I used the rate that I paid to Progress Energy for what I paid to the City of Rocky Mount last year I would have saved $170,000."

A big reason for the higher rates is the nearly $2.3 billion dollar debt the 32 municipalities share, which won't be eliminated until 2026.

"Before you turn on a power switch in Rocky Mount- 38% of our bill goes to debt-that's the facts-so before you use 1 kilowatt of energy-you're still subsidizing a decision that was made 30 years ago. So, help us please figure out how we can deal with that issue and how we can together keep our businesses competitive and if the businesses can't compete-what do you think about the fragile residents?" asked Rocky Mount City Councilman Reuben Blackwell

The committee plans to meet again, and bring in members of the power community.

If you have questions for the committee, we want to hear them. The chairman of that committee, Senator Buck Newton of Wilson will be live on WITN News at Sunrise Friday taking your questions. You can head to witn.com and submit questions by clicking on the ElectriCities story.

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The high utility rates that members of the North Carolina Eastern Municipal Power Agency pay, which is managed by ElectriCities, will be under the microscope beginning Tuesday.

It was last spring as part of our "Power Struggle" series that we reported customers in those 32 Eastern Carolina municipalities are paying as much as 35-percent more than other utility customers. A big reason for that is the debt from buying into nuclear facilities decades ago.

Studying the rates ElectriCities members pay is the aim of a new General Assembly committee that meets Tuesday in Raleigh for the first time.

ElectriCities CEO Graham Edwards told us during our previous reports that he was not opposed to the idea. "Ya know the legislature can study rates in any way, shape or form they like. And we will be there to help them and support them anyway we can."

Edwards has also recently sent a letter to the committee saying they will work closely with the committee members , including openly sharing financial information and other data. You can read that letter by clicking on the related link below.

The committee will consider the feasibility of refinancing or restructuring the debt of the power agencies and look into the option of selling assets to reduce the debt and lower electric rates.

We'll keep you posted Tuesday on what happens at this first meeting.


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Comments are posted from viewers like you and do not always reflect the views of this station.
  • by taxman Location: wilson on Oct 28, 2011 at 05:36 PM
    "Senator thinks...." Amazing headline. Not sure I would believe it however.
  • by Rich Location: Washington on Oct 28, 2011 at 02:29 PM
    Sounds like someone is looking for votes! Can't fight city hall, and you can't fight the electric co. good luck! If you lower my electric rates then you got my vote!
  • by Clifton Location: Washington on Oct 28, 2011 at 02:17 PM
    First thing. He says it will take at least a year to accomplish this. Funny part about that is there will be an election in a year. Is HE up for re-election? Second thing. Cities and towns have no business re-selling electricity that comes from another source. Let the originating source sell the electricity to the homes and business'. That alone would cut out the middle person responsible for another markup in charges. Face it. If the power agency charges the city of Washington 1.00 per kw of electricity, and the city of Washington re-sells that kw of electricity to me or you, do you think that the city of Washington is going to sell us that kw of electricity for the same thing that they paid for it?? NOPE!!! They are going to mark it up and make a profit. So they are going to charge us 1.35 or more for that kw of electricity. These are just numbers to give you an idea of what is happening. I have no idea what a kw of electricity goes for, but the process is the same. They are out to make a profit. Get the towns and cities OUT of the electric business and save the people who are paying the bill 30 to 50 percent from what we are paying now.
  • by Skeeter Location: Raleigh NC on Oct 28, 2011 at 12:16 PM
    The electric companies can not charge whatever rate they want to. The electric rates charged by the utility companies and ElectriCity are regulated by the State Utility Commission! The only way the ElectriCity rates can be adjusted is by them selling their investment in the electric generating plants or receiving money from outside ElectriCity (don't think the customers of the utility companies would be in favor of paying surcharge to generate money to be given to ElectriCity!)
  • by wake up! on Oct 28, 2011 at 11:21 AM
    there needs to be firm price controls on utilities ,gasoline prices and health care costs! all other things need to be free market. If something drastic is not done to cap the rising cost in some areas this country is over! Greed is killing the US! we have oil companies with 41% increases in profits! Folks if gas is 5 a gallon because of supposed China growth by 2013 there is no economy to worry about here! wake up folks you can have the greatest health insurance in the world but if you have to pay 10% of it, look 10% of 2 million is 200,000 and if you have cancer or serious acccident these numbers are very possible! Obamacare did not help it makes things worse,bottomline we need common sense and less greed! Utilities because of overall energy prices are about to go through the roof . All this being said not 1 republican or democrat has courage enough to say this.
  • by Anonymous on Oct 28, 2011 at 10:19 AM
    ROFLOL, they are joking. Them getting involved will only mess things up worse.
  • by Fair & Balanced Location: New Bern on Oct 28, 2011 at 08:31 AM
    The only way i can see that government needs to get involved is to regulate the amount of principal that the companies can charge to the customer per month. For instance, they should cap it off at 30% (for example), no matter what the principal of the loan is. Other than that, electricity is a luxury, not a right, and the government should not tell them how to run their business, other than ensuring that customers are getting exactly what they pay for, and nothing less.
  • by John Location: Richlands on Oct 28, 2011 at 07:46 AM
    I will not sit here and say the cost is not high for everyone however, I will say many homes are heating or cooling the outside. Are these homes well insulated in places such as the walls, attic, windows, floor. What kind of doors and windows do they have? The outlets also can allow a great deal of cold or heat into a home. Many electric company's can come out if requested and provide helpful ideas in those areas. Is the heating/cooling unit that may need replaced or maintenance done on it? All of which still cost but in the long run could bring some cost down. Something to think about!
  • by Anonymous Location: Henrico on Oct 28, 2011 at 07:38 AM
    Family incomes and medical problems have no bearing on rates for electric power. You need to find a different forum.
  • by Fatman Location: MHC on Oct 28, 2011 at 07:34 AM
    Don't like the cost of the service, don't use it. Price compare installing solar or wind generated electric or a generator. Install, maintain, service, repair and replace everything yourself. Figure out how many hours it would take and how much your worth and compare it to what your paying now. No belly aching, just try it and see what you come up with. Now ask yourself it is worth it or not.
    • reply
      by Fatman on Oct 28, 2011 at 07:55 AM in reply to Fatman
      I just deciced that I'm not done yet. Don't like the rates? Then let us all work together to get renewable sources, like wind generators off the coast. Or lets tap the natural gas deposit off our coast. Occupy some sense, quit complaining and bring solutions, not noise.
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