Troy Electricity Costs

By: Erica Proffer
By: Erica Proffer

Troy residents could see a rise in their power bills over the next few months. It's due to a fuel adjustment the city is making to Alabama power, Troy will be spending a little more for power per kilowatt hour.

Over the next four months Troy residents will pay about $1.45 per kilowatt hour on their power bills. The city of Troy is facing almost a million dollar fuel cost adjustment for electricity.

That cost will be passed down to consumers.

Troy buys wholesale power every six months from southern company which is a parent company of Alabama Power.

Troy has to make an adjustment for buying the power at a lower rate; this is not to be confused with a rate increased.

"This is not a rate increase. A rate increase will require an ordinance change, and this is not a rate increase. It's a fuel cost adjustment passed down to us from our supplier Alabama Power, or the Southern Company," said Troy Utilities, Brian Morgan.

The fuel cost adjustment is a routine investigation done by the power company. It compares the projected cost of electricity charged to a wholesale customer for a six month period to the actual cost of the fuel. Sometimes this can be a credit owed to the customer, or a balance. In this case it was a big balance. Some say the largest Troy has ever seen.

A Troy resident Ben Fletche said, “I really don't think it's fair because it's a small community. It's just not helping us right now."

The balance will be passed on to Troy’s utility customers starting with this month's bills.

Troy Mayor Jimmy Lunsford says he hopes that after the four month adjustment period. Residents will see their power bills back to normal. He also said that these fuel cost adjustments happen frequently. Usually they are so small that they aren't reflected in the rates.

The new adjustment equals about $9 per each thousand kilowatts used.


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