City mulls proposed $2 change to monthly electrical rates

Published 10:12 am Tuesday, April 15, 2025

The Athens City Council will consider a proposed rate change that, if approved at a future meeting, would require residential and small commercial customers to pay an additional $2 on their regular electrical bills.

First raised this week at the council’s April 14 regular meeting, the proposal failed to meet with a direct council approval after council member Harold Wales cast the lone dissenting vote against adding the measure to the meeting’s agenda. Though it will likely appear on a future agenda — as soon as the council’s next regular meeting on April 28 — Wales expressed relief that his elected colleagues will have additional time to research the proposal further.

“When I saw this, my question was, ‘Why are we doing this now? I’m walking into this completely fresh,” said Wales after the meeting. “My thought was, ‘Well, wait a minute — let’s give ourselves a little more time to think about it and maybe do our homework.’”

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In a memo explaining the proposal to the mayor and council, city utilities described the $2 adjustment as “an effort to minimize lost revenue” for the electric department, while also noting that the adjustment would be “revenue neutral” for both TVA and for Athens Electric. If the change is approved, the utility added, “[t]here would also be a corresponding reduction in the energy rate of $.00154 per kWh [kilowatt-hour]” for affected residential customers, as well as “a reduction of $.00180 per kWh” for small commercial customers.

City representatives said the Athens Electric Department’s cost to provide power to small-demand customers (including residential and small commercial accounts) averages approximately $20 per month, and that the proposed $2 customer charge is intended to stabilize utility revenues during weather periods when customer demand for electricity outpaces the ability of the Tennessee Valley Authority’ (TVA) to produce it at pace that is cost effective.

If approved by the council at a future meeting and subsequently approved by TVA, the $2 adjustment would take effect beginning Oct. 1 of this year.

In other business at its regular meeting, the council:

— Approved a “Lounge Retail Liquor-Class II (Package)” alcohol license for Beaver Trap Liquor Smoke, Inc. — doing business as Beaver Trap Liquor — located at 22041 US Highway 72, Suite B in Athens.
— Authorized Mayor Ronnie Marks to enter into a memorandum of understanding between the city and Toyota Tsusho America, Inc. (TAI) to conduct a study concerning the city’s role in a potential solar power generation agreement between the company and the Tennessee Valley Authority.
— Adopted an organizational chart for the cemetery, parks and recreation department. Separately, the council also adopted job descriptions for Building Facilities Crew Leader and Cemetery Services Crew Leader, and adopted revised job descriptions for Facilities and Grounds Maintenance Supervisor, Cemetery Administrator, Grounds Maintenance Technician I/II and Grounds Facilities Crew Leader for the same department. The council also amended city Ordinance No. 888 to establish a classification list for full-time department employees, including those positions whose new and revised job descriptions were approved during the same meting.
— Adopted a resolution allowing the city engineer to enter into an agreement with the Alabama Department of Transportation (ALDOT) to acquire permits for the construction of a right-hand turn lane, with concrete separation islands and a median separation island, at mile post 77.05 through 77.14 on U.S. Highway 72 as part of an economic development project for the JHR Additions subdivision.
— Authorized the mayor to enter into a maintenance & permits agreement with ALDOT for traffic signal equipment upgrades, operations, and maintenance of U.S. Highway 31 at its intersection with Elm Street. Separately, the council also authorized the mayor to enter into a maintenance agreement with ALDOT for traffic signal equipment upgrades, operations, and maintenance of the U.S. Highway 72 and Hine Street intersection for the addition of a pedestrian crossing.
— Adopted an ordinance abandoning/vacating two utility easements on real property owned by East Side Strip, LLC .
— Approved payment to Alabama Guardrail, at a cost no greater than $30,000, to build a guardrail at the bridge on Elkton Road, to be funded from Gas Tax Funds. The council also approved a separate payment to Alabama Guardrail, at a cost no greater than $6,500, for repairs to a damaged guard rail on South Madison Street, to be funded from Gas Tax Funds.
— Approved the purchase of three Ford Flat Crew Cab gas 1 ton 4×4 trucks (including a 2015, 2017, and 2018 model) from the Alabama Department of Transportation, each funded from the street department’s existing capital account . The maximum approved purchase price of the 2015 vehicle is $37,000, while the maximum approved purchase prices of the other two vehicles is $38,000 apiece.
— Approved the purchase of equipment for seven police vehicles, including its installation, from MCA (Sharp Communications). The maximum approved purchase price is $79,972, and is funded from the police department’s existing capital account.
— Approved the purchase of a brush truck skid unit and accompanying equipment for the fire department, at a cost no greater than $20,000, from Sunbelt Fire. The purchase is funded from the fire department’s existing capital account.
— Approved payment to Williams Apparatus for additional repairs to the fire department’s 95’ platform ladder truck at a cost no greater than $20,000. The payment is funded from the fire department’s existing capital account.
— Approved the purchase of a Kubota 48” stand-on lawnmower with mulch kit, at a cost no greater than $10,277.41, from & R Agripower. The purchase will be made via the Sourcewell government purchasing cooperative and is funded from the street department’s existing capital account.
— Approved the purchase of a 12 foot trailer, at a cost no greater than $2,585, from Lawrimore Trailers. The purchase is funded from the street department’s existing capital account.
— Approved miscellaneous travel and education expenses for street department personnel, the electric department, the mayor’s office, and Mayor Marks.
— Approved a “Temporary Non-Profit Special Event Retail” alcohol license for a forthcoming event sponsored by the Boys and Girls Clubs of North Alabama.
— Set a public hearing concerning the proposed vacating of a portion of Greenfield Drive.
— Reappointed Marsha White to the NCA310 Board (relating to developmental disabilities) for a six year term expiring April 30 of 2031.
— Changed the date of the council’s scheduled May 26 meeting to Monday, May 19 (one week earlier) in order to accommodate the May 26 Memorial Day holiday.