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Alexander City Council adopts code change allowing negotiated industrial utility rates after debate over transparency
Summary
On Feb. 3 the Alexander City Council approved an ordinance amending city code section 90-108 to allow negotiated industrial service rates for large utility customers. Councilors pressed staff for clarity about how negotiated deals would be approved and applied; the ordinance passed on a unanimous roll call vote.
Alexander City Council on Feb. 3 approved an amendment to the city code that allows the city to negotiate utility rates with potential industrial customers rather than using a single fixed rate.
The ordinance, an amendment to Alexander City Code section 90-108 (industrial service), passed on a roll call vote with six votes in favor and none opposed. Councilors said the change is intended to give the city flexibility to compete for large industrial users, but several members pressed staff for clear procedures and transparency so residents and other businesses would not be surprised by individually negotiated deals.
Councilor Chris Brown said the council had discussed the measure during the work session and invited staff to explain how the new language would operate. Chris, a utility department staff member, told the council that negotiated rates would be handled case by case — “It will be negotiated,” he said — rather than establishing a single fixed discount in the ordinance.
Several councilors raised concerns that ad hoc negotiations could create fairness issues between businesses that qualify for industrial service discounts. One councilor said the council should be kept informed and have the opportunity to review or approve negotiated rates to ensure transparency for ratepayers. Other councilors and staff said the ability to negotiate is intended to support economic development by allowing the city to match offers from competing jurisdictions for very large users.
The ordinance does not list a fixed new rate in the code. Council discussion referenced a usage threshold discussed during the meeting (10,000 units was cited repeatedly as a trigger for industrial consideration), and councilors debated whether exceptions should be allowed for much larger users that could justify deeper discounts as part of economic development negotiations.
Formal action: the council first voted to consider the ordinance immediately, then voted to adopt it as written. The roll call on adoption recorded votes of “yes” from Councilor Chris Brown, Councilor Phillips, Councilor Tapley, Councilor Hardy, Councilor Eric Brown and the Chair. The motion to adopt carried; the ordinance will amend section 90-108 as described in the meeting materials.
Councilors asked staff to develop procedures for future negotiated agreements, including how and when those agreements would be reported to or approved by the council. Those procedural details were discussed but not codified in the ordinance text adopted at the meeting.
The change is limited to the city code subsection identified in the ordinance (section 90-108) and applies to future industrial service agreements; no existing customer contracts were altered during the meeting.
The council meeting record shows the amendment passed unanimously on Feb. 3, 2025. Councilors and staff said the measure is intended to help attract large industrial customers while they work out a transparent process for approving specific negotiated rates.
