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Regional utilities say Crossville's automatic 25% wholesale rate hike is crippling smaller systems
Summary
Utility representatives from Grandview and nearby systems told the council the city's contract-linked 25% wholesale rate increase effective July 1 has immediate financial impacts and asked the council to reconsider the automatic trigger or move the matter to the full council for review.
A utility representative speaking to the Crossville council said an automatic 25% wholesale water rate increase took effect July 1 under existing contract language and that customers and small utilities were billed without notice. "We have increased the wholesale rate 25% according to the contract because the council did not say they did not want to increase the wholesale rate 25%," the presenter said, describing the billing that shocked several neighboring utilities and customers.
Speakers representing affected utilities and Grandview said the higher wholesale price could be crippling for smaller systems and contrasted Crossville’s new $5.71 per thousand wholesale figure with other contracts and industry norms. Council members asked staff for the exact contract language that links inside-city rate changes to wholesale adjustments and agreed to hold the matter over to the next full council meeting so staff can review the trigger and consider steps to pause or amend the automatic adjustment. "I think I'd like to get it moved to the meeting, next week," one council member said when members sought more time to examine contract details.
