Power rate increase to pay for dam likely

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LCNN - 12-17-2009 at 11:09 PM

Somerset - Commonwealth Journal
It’s not rumor. It’s a fact. Concerns by Somerset City Council and Pulaski Fiscal Court about a stiff electrical rate increase to pay more than half the cost of repairs to Wolf Creek and Center Hill dams will become reality unless political pressure intercedes.

If the United State Army Corps of Engineers continues to obtain money under the same formula to repair Wolf Creek and Center Hill dams, electric customers may see a 45 percent rate increase for hydroelectric power produced at Corps dams.

Center Hill Dam near Nashville has serious seepage problems and the Corps has obtained federal funds for design and construction of a long term fix by 2014. The much chronicled seepage problems at Wolf Creek Dam are on schedule for permanent repair by December 2012.

Leon Jourolmon, assistant adminis-trator for finance and marketing, Southeastern Power Administration (SEPA), agrees if the Corps continues to use “construction general” funds to repair the two dams, customers using hydroelectric power generated by the Corps may have to pay more than half the cost. It would mean a electrical rate increase of 45 percent based on a “quick study” done by SEPA in February 2009.

Estimated cost of repairing Wolf Creek Dam is $584 million. Fixing Center Hill Dam is another $269 million. The total is $853 million, of which more than half –– $436 million –– would be recovered by rate increases imposed by SEPA for hydroelectric power produced by Corps dams, Jourolmon said.
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squakmeister - 12-18-2009 at 12:57 AM

I'm just going to have to recover my rate increase by catching more fish.
I'll have my boat paid for in about 3 more years if I figure an average of
about $5 per pound. Once that is done, I'll start on the electrical rate increase.

Thank Goodness for wood and matches for cooking.

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