Due to an approved rate hike, Oak Ridge Electric customers can expect their wallets to feel slightly lighter come October. According to the City of Oak Ridge, a 2% local rate increase will start adjusting electric bills upwards with the commencement of meter readings on October 1. This adjustment, the first of its kind since the pre-pandemic era, bridges the gap left by COVID-19's long shadow and signals an era of infrastructure improvements.
City of Oak Ridge Electric Director Dave Cross stated to the city's news page that the rate change translates to an average uptick of "$2 to $3" on residential monthly bills. Cross further explained the reasoning behind these financial moves, indicating they align CORED's costs with those of similar entities, a necessary step to maintain and enhance the resilience of the Oak Ridge community's electric grid. This forthcoming change aligns with the Tennessee Valley Authority's (TVA) prior decision to raise their rates by 5.25% in late August.
With upgrades in the pipeline, Oak Ridgers will see their city's aged power poles and copper conductors replaced and substations modernized. Cross shared, "The increases will bring our fees and rates more in line with other cities and utilities. While no one wants their electric bills to go up, we really need this increase to continue to provide a stable electrical grid for our residents". CORED's concerns are not solely infrastructure-oriented but also extend to the logistical side, with disconnection and reconnection fees slated for revision on the same day.
New fees will see residents charged $40 for initial disconnections and reconnections during regular business hours. Meanwhile, those necessitating service interventions after hours will encounter an extra $80 charge. The expenses of vital components, like transformers, have soared monumentally — Cross pointed out the stark climb from $1,700 in 2018 to today's $5,000 and highlighted CORED's balance act in mitigating these costs while steering the electric grid toward a future of reliability.
Recognizing the pinch this rate increase might bring, CORED promotes its Budget Billing Plans to help customers manage payment consistency through eligible accounts. Interested parties with a clean track record and a yearlong history with the utility company can seek out the program for more predictable monthly expenditures. For additional information, Oak Ridge offers resources via its website and the Utility Business Office. For those struggling, ADFAC assists in rounding out the community's effort to maintain equilibrium amidst financial adjustments.
