Reject Huntsville Utilities' Request to Raise Fixed Fees
Huntsville City Council

We, the undersigned, oppose fixed fees on our utility bills because:
- Fixed fees hurt low-income customers and apartment dwellers the most.
- Fixed fees inherently subsidize large homes with higher energy consumption.
- Fixed fees discourage energy efficiency and renewable energy.
- Fixed fees do not assign the costs of the grid to who is causing the cost to the grid. Grid costs are primarily driven by peak demand such a hot summer days and cold winter mornings. Fixed fees encourage people to inadvertently make this problem worse.
- We believe it is unfair to pay for utilities regardless of if we use them.
We believe Huntsville Utilities should:
- Decline to increase to fixed fees for the reasons stated above.
- Retain the inclining block rate for residential customers.
- Inclining block rates charge people more money the more energy they use. Such a rate structure encourages energy conservation, efficiency, and renewable energy in absence of better rate structures enabled by smart meters.
- Remove the declining block rate for small commercial customers.
- Declining block rates charge people less money the more energy they use. Such a rate structure discourages energy conservation, efficiency, and renewable energy.
- Only increase the energy charge, not the fixed fee, if additional revenue is still required. Such an increase should be accompanied by a "time of use" rate when smart meters are deployed in Huntsville.
- Huntsville Utilities’ costs are in large part driven by consumption during times of congestion. If residents and companies are allowed to choose rates that avoid consumption during these times, they save money and the whole system saves money.
- Increase public notice and participation.
- Huntsville Utilities provided less than 2 weeks’ notice of the first public meeting.
- Delay their request for final City Council vote currently scheduled for October 11.
- Huntsville Utilities has requested less than one month between first public notice and the proposed final vote by City Council. The compressed time schedule and open records stalling tactics are an intentional strategy to reduce public participation, largely because the public is against their proposals.
Sponsored by
To:
Huntsville City Council
From:
[Your Name]
Dear Huntsville City Council,
I write you today to ask that you oppose Huntsville Utilities' requests to increase their fixed fees for electricity.
I oppose fixed fees because:
1. Fixed fees hurt low-income customers and apartment dwellers the most.
2. Fixed fees inherently subsidize large homes with higher energy consumption.
3. Fixed fees discourage energy efficiency and renewable energy.
4. Fixed fees do not assign the costs of the grid to who is causing the cost to the grid. Grid costs are primarily driven by peak demand such a hot summer days and cold winter mornings. Fixed fees encourage people to inadvertently make this problem worse.
5. I believe it is unfair to pay for utilities regardless of if we use them.
Therefore, I ask that you require Huntsville Utilities to:
1. Decline to increase to fixed fees for the reasons stated above.
2. Retain the inclining block rate for residential customers. Inclining block rates charge people more money the more energy they use. Such a rate structure encourages energy conservation, efficiency, and renewable energy in absence of better rate structures enabled by smart meters.
3. Remove the declining block rate for small commercial customers. Declining block rates charge people less money the more energy they use. Such a rate structure discourages energy conservation, efficiency, and renewable energy.
4. Only increase the energy charge, not the fixed fee, if additional revenue is still required. Such an increase should be accompanied by a "time of use" rate when smart meters are deployed in Huntsville.
5. Invest at least 0.2% of its gross residential revenues on low income energy efficiency efforts above and beyond other sources of revenue such as grants from the Tennessee Valley Authority (TVA).
We thank you for attention in this matter and for your service to the people of Huntsville/Madison County.