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Author Topic: Ava Electric Rates Practically Double  (Read 1050 times)

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Offline Eeyore

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Ava Electric Rates Practically Double
« on: September 07, 2008, 03:32:30 PM »

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Ava Electric Rates Practically Double
http://www.kspr.com/news/local/27895389.html

 By             KSPR News
 
By             Joanna Small
Story Created: Sep 5, 2008 
Story Updated: Sep 5, 2008                                                   
They knew it was coming.   People in Ava were expecting a rate hike- what they got was even worse than imagined.  For the past five months Ava's utility rates have nearly doubled.
The local provider is technically the city.
It contracts with Sho-Me Power and that's the company behind the massive rate hikes.  The rates are taking a toll on residents, businesses, and non-profit organizations scrambling to become energy efficient overnight.
  "They’re at a place now where they simply don't know what to do.”
  Oren Alcorn is talking about the residents of Ava.
  The General Baptist Church he's pastored for more than two decades knows exactly what to do.
  “We’re going to have new windows installed."
 Plus, the church changed to a programmable thermostat, added insulation, and is utilizing ceiling fans- anything to cut back on a bill that's jumped by 50%, and that's a deal when you look at the big picture.
  “For Ava we ended up with about a 70 to 80% rate increase."
 Administrative Director Peggy Porter says the city absorbed and expected about a 20% rate hike from Sho-Me Power, the electric company Ava contracts with.
  But the extra 60% was a surprise.
  Porter explains, “They had implemented a new rate structure."
  Ava found out in January.
 The new structure charges more for cities like Ava that have what's called a high load factor, meaning they use a lot of energy.
  The bigger bills began in April.
 “We tried to implement it in stages to the community so they wouldn't get hit quite as hard initially, but as we hit this month of September and October then the full effect of the bill started hitting,” says Porter.
  “My bill went up $56 this month compared to what it was three months ago for similar utility usage,” Alcorn.
  For people like him it’s been painful, on a personal level and a professional one.
  But there could be an end in sight… and possibly a courtroom.
 Porter tells KSPR: “We hired an attorney that specializes in utility law who is now working with Sho-Me to negotiate our contract."
  Porter says it could take months or even years to get out of the contract with Sho-Me Power and find another wholesaler.
  Until then, she asks that the people of Ava be patient.
    "Hey, hey, hey, hey now.  Don't be mean.  We don't have to be mean. because, remember, no matter where you go, there you are."      - The Adventures of Buckaroo Banzai across The Eighth Dimension