Wlaf1450Rate adjustment will be used to “keep the utility in a sound financial place, and allow the upgrades”
TOP PHOTO: The LaFollette Utility Board met Tuesday evening, approving a 2.7 percent electric rate adjustment. This will equal a $3 increase for residential and small commercial users.
By Charlotte Underwood
LAFOLLETTE, TN (WLAF)- The LaFollette Utility Board held its workshop and meeting on Tuesday evening, approving an electric retail rate adjustment, among other business items.
The utility approved a 2.7 percent electric retail rate adjustment to cover the cost of bonds and the capital outlay projects of three substation transformers, as well as regulators and reclosures and other capital projects including line upgrades. The rate adjustment will affect rate classes differently and for residential and small commercial the customer charge increase will be $3, according to LaFollette Utility General Manager Regina Kennedy. The rate adjustment is effective October 1st.
The rate adjustment has been approved by the Tennessee Valley Authority.
According to Kennedy, the increase is not 2.7% to everyone but averages out to 2.7%.
“It affects the different rate classes differently,” Kennedy said, explaining that the utility had several rate classes including residential class, general power, small commercial, large commercial and industrial rates.
“In some cases, it will affect the customer charge and in other cases it will only affect the kilowatt hour charge. For residential and small commercial the customer charge increase will be $3,” Kennedy said.
This electric retail rate adjustment will be used to “keep the utility in a sound financial place, and allow the upgrades,” according to Kennedy.
Also approved was for a substation reclosure/breaker purchase and substation regulator purchases/. Both of these items will be covered by bond funds. The items are from Eaton Power Systems and will be used at Sweet Gum Flats and at the Royal Blue substations. All the other substations already have reclosures and regulators.
According to Kennedy, the quotes on the cost of these reclosures is $190,524 for three breakers/reclosures and they have a 62-week waiting period on these items. Six regulators are needed at a quoted cost of $135,720 each for a total of $814,320. Kennedy cautioned that “pricing may change upon delivery due to tariffs.”
Final business approved was for the utility to open a new interest-bearing bank account that will be specific to the water department. Signature cards will have to be updated as well. The account is being opened at Builtwell Bank.
The Utility Board also approved extending the deadline on advertising for a new board attorney by a week in order to receive more applicants. Applications will be accepted through June 4th and applications must be turned in by 4:30 pm of that day.
It was also approved to add the job advertisement to the utility website and Facebook page. (WLAF NEWS PUBLISHED-05/28/2025-6AM)