Electric rate study shows FY24 gap; consultants recommend restoring seasonal residential rates and tweaking class allocations

Electric Cities of Georgia officials told East Point City Council on June 19 that a cost-of-service study for fiscal year 2024 shows the city's electric utility ran a roughly $4.5 million shortfall and that residential rates charged year-round at the lower "winter" level explain much of the gap.

The study, presented by Cho Nguyen, director of analytical services at Electric Cities of Georgia (ECG), and Kathy Johnson, manager of analytical services, analyzed FY24 billing, unaudited financials and power purchases. "With that, you were in a deficit of $4,500,000 for fiscal year 24," Johnson said during the presentation.

ECG said purchases of power (MEAG) and fixed costs represent most utility expenses while residential revenues are understating fixed-cost recovery. The consultants told the council residential customers were billed at the winter rate year-round for several years, including during summer months, and that restoring separate summer and winter residential rates…