WILLIAMS - There won't be an electrical rate increase for Williams subscribers this year, and probably not next year, according to members of Williams City Council. Council members voted not to increase rates during their regular meeting Nov. 12. They acknowledged, however, that fees would have to be raised within the near future.
According to Finance Director Joe Duffy, the city's current contract for power will expire in 2018.
"We have a really smoking deal right now," Duffy told council members. "We know that when we resign that agreement, our cost of power is going to go up susbstantially."
In an effort to alleviate what could be a large increase in electrical fees, Duffy offered council members the option to slowly increase rates over time.
"The theory that I am proposing is that we just gradually increase rates over time so that the impact of that 2018 increase is not as severe," Duffy said, adding that funds would also be used for a number of large-scale capital projects slated for the Williams power system.
"The city of Williams has not ever increased electric rates since they took over the system in 1992," Duffy said.
Residential rates are roughly 20 to 15 percent below rates charged by Arizona Public Service, Duffy added.
Mayor John Moore said he would be against any decision to raise electrical rates.
"I will not support, as mayor or a citizen, any rate increase on anything for the community right now. Period," Moore said. "People are suffering out here. They're having a hard time paying their bills and now the timing is just wrong."
Council member Andrew Hamby said he was in agreement with the mayor.
"We've already doubled the wastewater treatment rates. We've increased the water treatment rates just in the last 12 months. I wouldn't be in support of any rate increases of any kind for '09 or 2010," Hamby said. "Essentially every utility that is not controlled by this municipality is doing rate increases. I remember when those APS rate increases happened in the county just a couple of years ago, there was a pervasive feeling of helplessness from the people paying the bill. We've established a pattern that every time there is a cost that needs to be paid, or a perceived improvement that needs to be made, we expect the taxpayers to pay it. We're still not actively looking for grants to pay for infrastructure improvements."
While he agreed that a rate increase would not be a good idea at this time, Councilmember Bill Miller commended Duffy for planning ahead.
"I have to commend Joe for looking forward and setting up our future security for the city," Miller said. "I think politically, and the timeliness of it, is just not a good decision. I think we need to keep looking at it and Joe needs to keep putting it in front of us periodically. It's something we'll eventually have to do something with or we won't have any electricity for anyone."
McNelly said that increases should be considered sooner than later in order to provide infrastructure money for the city's electrical system.
"I don't think, at this time, that we should do an increase, but sticking your head in the sand for election time, or whatever else, is not the thing to do. I think we should keep looking at it," McNelly said.
"A one percent increase will increase the average residential bill by 67 cents per month," said Councilmember James Wurgler. "I know that I am speaking out for the minority here, but this is short sighted. The whole question is if we don't do it now, when? The commercial folks have considerably more to be concerned about. The 67 cents for the average residential at one percent is more like $9 for small commercial outfits."
