Town: get ready for a shock
FILE PHOTO
The town of Culpeper issued a release Thursday saying its residential and small business power customers could expect an almost 11 percent increase in the bills going out this week.
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By Allison Brophy Champion
Published: May 8, 2008
Feeling pain at the pump? Get ready to feel it in your electric bill too.
The town of Culpeper issued a release Thursday saying its residential and small business power customers could expect an almost 11 percent increase in the bills going out this week.
Larger businesses served with town power will see a whopping 17 percent increase.
The steep hike stems from the wholesale provider’s increased costs to produce electricity, according to the town, and specifically, the rising cost of fuel.
“It is strictly a pass through from our wholesale provider,” said Mark Bly, Culpeper Town Director of Light & Power. “It has nothing to do with any rate increases approved by council.”
The town of Culpeper purchases its electricity from Dominion Virginia Power as part of a municipal electric cooperative contract with other localities.
Bly said the 10.94 percent “fuel factor” increase comes as DVP this week asked the State Corporation Commission — the state’s utility regulators — to approve raising residential rates by as much as 18.3 percent.
DVP wants the increase to cover the rising cost of producing electricity using oil, natural gas and coal, according to the release put out by Wally Bunker, the town’s public information officer.
The fuel factor increased 87.4 percent this year, resulting in the pending town increases.
The average town residential customer uses about 926 kilowatt hours per month, meaning the average bill will go up by about $9.85 — from $89.99 to $99.84.
Bly said rising fuels costs associated with producing electricity is an industry-wide problem.
Allison Brophy Champion can be reached at 825-0771 ext. 101 or
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Reader Reactions
Posted by ( Culpeper Resident ) on May 09, 2008 at 1:22 pm
Does it really matter when the town knew? Probably not along time, since this week Va Power customers found out for the first time that their rates might go up 18.3 percent because of the fuel adjustment. The town apparently is just passing through what Va Power is charging them. Would you rather not have known at all just wait for the town’s bill? I wouldn’t. I am glad I at least know why I am going to suffer from sticker shock on my electric bill, like my gas bill, like my food bill, like every bill.
Posted by ( Riawoody ) on May 09, 2008 at 8:25 am
I understand why they need to increase the cost of electricity, but 11%?? Everything has gone up- gas, groceries, and now electric. I am curious as to how many businesses have given employees cost-of-living raises. They want to know why the economy is so bad- but who has extra to spend? It is not the middle or lower class citizens- I can assure you. And they want us to spend the “stimulus” money on frivolous entertainment?? I bet that most of us will use that to pay off bills!! My groceries have gone up $50 a week, my husband is spending almost $200 a week in gas, and now an increase in electric. Do I turn off the air conditioner and risk my son going into an allergy-induced asthma attack because my electric bill is to high?? These are hard times!! Just venting my frustration!
Posted by ( BJBIII ) on May 09, 2008 at 6:58 am
I wonder how long the town has known about this rate increase.
Posted by ( gonetothedogs ) on May 08, 2008 at 6:28 pm
What else is new?