The Cobb EMC Board of Directors voted unanimously June 25 to reduce the millage rate by 1 mill effective immediately in the utility’s wholesale power adjustment. This is a reduction from 0, where it has been since January, to -1. The reduction is equivalent to 1/10th of a cent, or about $1 per 1,000 kilowatt hours.
“We’ve been hard at work this last year to control costs and make progress that truly benefits our members. Passing those savings on through lower monthly bills was the logical next step,” said board chair Ed Crowell.
The typical Cobb EMC residential member in nine metro Atlanta and southwest Georgia counties will save on average $1.14 each month, or $13.68 a year, on electric services.
This reduction follows a rate adjustment in November 2012, which helped earn Cobb EMC a Georgia Public Service Commission ranking of eighth out of the state’s 41 EMCs, in terms of affordability at 1,000 kilowatts per hour.
The Wholesale Power Adjustment represents the variations of fuel costs and plant operations experienced throughout the year.
Cobb EMC spokesman Mark Justice said the utility is still experiencing the benefits of lower natural gas costs.
Justice also said that this decision was not related to the company’s decision last week to reduce its staff by up to 20 percent, or between 55 to 110 employees.
“Cobb EMC electric rates are based on cost projections, and when costs are lower we can return the savings to our members through a reduction in Wholesale Power Adjustment,” Crowell said.
While Cobb EMC is reducing rates, Georgia Power Co. is asking state regulators to increase its base rates by about $482 million, or 6.1 percent.
The Atlanta-based utility company is asking for the rate increase to recover infrastructure investments, including environmental controls, transmission and distribution, generation and investment in smart-grid technologies.
If approved, a typical residential customer using 1,000 kilowatt hours per month could see an increase of about 6.7 percent, or $7.84 per month, in their Georgia Power bill. Proposed changes would take effect Jan. 1.
For more information about Cobb EMC’s rates, visit cobbemc.com.