Lingering Drought,

Rising Cost Of Fuel

Cited For Increase

By Manager Carroll

By AMY ROSE

Staff Writer

Residential customers of the Greeneville Light & Power System likely will see an estimated 18 percent increase in their bills beginning in October, according to discussion Monday at a meeting of the GL&PS board of directors.

General Manager Bill Carroll told the board that GL&PS "has no options" other than to pass along the 20 percent rate increase TVA approved last week.

He said preliminary calculations show that GL&PS's residential rates will increase by approximately 17.78 percent.

Carroll noted that similar calculations for commercial and industrial rates have not been completed.

No action was taken on the rate increase.

Carroll said he will have more detailed information for the board to consider in September.

The TVA rate increase takes effect on Oct. 1.

Carroll explained that TVA is increasing its rates to offset rising fuel costs.

GL&PS board member Sam Miller added that he recently spoke to TVA President and CEO Tom Kilgore, who said the increase also was caused by the drought of the last two years and its effect on hydroelectric power.

Carroll said TVA used to get 22 to 25 percent of its power from hydroelectric sources, and in the last two years, that amount has decreased to 10 percent.

As a result of this decrease, TVA has been forced to purchase power from other energy suppliers, Carroll said.

A TVA press release issued Aug. 20 stated, "Skyrocketing prices for fuels TVA uses to make electricity, such as coal, natural gas and power purchased from other energy suppliers, will cause electricity to increase about 20 percent effective Oct. 1."

Carroll said GL&PS is participating in various programs that will help its customers conserve energy and lower their electric bills.

Energy-Saving Tips

He also is offering these energy-saving tips:

* Turn up your cooling system's thermostat to 78 degrees and even higher when no one is home. Use electric fans to maintain comfort with a higher thermostat setting.

* Lower your water heater temperature to 120 degrees and reduce hot water use by taking shorter showers and using cold water for laundry whenever possible.

* Turn off lights, appliances and other home electronics with a power bar when not in use.

* Use the "sleep mode" on computers.

* Use the microwave instead of a stove burner or oven for cooking.

* Remove and recycle your second refrigerator.

* Operate dishwashers and clothes washers only with full loads, and air-dry dishes in the dishwasher.

* Replace incandescent bulbs with compact fluorescents, which use 75 percent less energy and last 10 times longer.

* Keep curtains closed on the south, east and west sides of the house during the day to help keep cool.

* Clean refrigerator coils and set the temperature to 36-39 degrees and the freezer to 0-5 degrees.

* Caulk and weatherstrip around windows and doors to stop air leaks. Seal any gaps in floors and walls around pipes and electrical wiring.

* Change filters monthly. Dirty filters make air-conditioning units work harder.

* Install aerating, low-flow faucet and showerheads and repair leaky faucets.

* Tune up your heating and cooling system. Seasonal tune-ups will keep your system running as efficiently as possible. Have your ducts inspected. Repair air leaks and seal and insulate cooling system ductwork.

* Add insulation to your attic, crawl space and any accessible exterior walls. Add pipe insulation to the first five feet of water pipe coming from your water heater. Install light switch and electrical outlet seals on exterior walls.

* Look for the Energy Star label when replacing large or small appliances.

* Use power strips for home electronics, and turn off power strips when equipment is not in use. TVs, DVD players and similar equipment still use power when the switch is off.

* Replace worn-out seals on your refrigerator and freezer.

* Plant a tree. Shade trees placed on the south or southwest side of your home will keep it cooler.

Customers also can complete an online home energy audit at www.energyright.com and receive a free energy efficiency kit to help them get started.

For more information on the TVA rate increase, visit www.tva.com.

Deposit Policy Approved

In other business during the 30-minute meeting, the board approved a new deposit policy for commercial and industrial customers.

The policy states, "GL&PS will accept the following alternate payment methods in lieu of a security deposit.

"A. To avoid posting a security deposit, Customer must prepay its estimated monthly bills, such estimates being based upon historical or expected use patterns for that specific account. No formal bill will be prepared, the regular billing cycle will continue and Customer's advance payments will be posted to its account so that the bill issued in the mail will reflect current balances. In such instances, failure to pay agreed prepayment amounts at least five days prior to the beginning of the regular billing cycle for that account will result in that account being subject to disconnection for non-payment without further notice.

"B. GL&PS will accept weekly payments in arrears based on historical or expected use patterns for that specific account. No formal bill will be prepared, the regular billing cycle will continue and Customer's payments will be posted to its accounts so that the bill issued in the mail will reflect current balances. In such instances a failure to pay the agreed weekly payment amount by 5 p.m. Monday of the following calendar week will result in that account being subject to disconnection for non-payment without further notice."

Carroll read the new policy and said it will help prevent interruption of service for those commercial or industrial customers who do not pay their entire security deposits.

Insurance Delayed

The GL&PS board delayed action on the renewal of the utility's property and liability insurance.

Carroll said he and John McInturff, of McInturff Milligan & Brooks, are continuing to work on getting better rates for the policy.

Carroll noted that the insurance has to be renewed by Oct. 1.

The GL&PS board is scheduled to meet again on Sept. 22.