Annual utility rate increases in Moulton will affect gas customers beginning Oct. 1

Pepper

An annual 3% increase in Moulton’s water and sewer rates will increase by a percentage this October and Moulton Utility gas customers will see a 4% increase in rates this fall.

Moulton Council members approved the changes to the annual increase in a regular meeting Monday night.

City Clerk Deroma Pepper said the yearly increase of 3% was implemented for water and sewer customers only under former Mayor Ray Alexander’s administration in May of 2009. She said the resolution saw utility rates increase every October, but did not adjust rates automatically for gas customers.

Under the new rate increase, water customers who live inside city limits, have a standard meter, and consume up to 2,500 gallons per billing cycle will see an increase from $20.66 to $21.49.

Rates for additional consumption will also increase by 4%, which means customers consuming up to 5,000 gallons will pay an additional $8.69 beginning Oct. 1 for the first additional 2,500 gallons. The next 5,000 gallons will increase the rate to $6.15, the next 10,000 gallons will increase to $5.19, and customers who consume 20,000 gallons will pay an additional $3.20.

Residential customers who live outside city limits with a standard meter and consume up to 2,500 gallons will see an increase from $21.53 in 2019 to $22.39 beginning Oct. 1. An additional 2,500 gallons will cost the customer $9.60 for that billing cycle.

Commercial users with a standard meter will see an increase from $107.01 to $111.29 for up to 20,000 gallons per billing cycle. The rate will increase by an additional $3.12 for any water consumption over 20,000 gallons.

The minimum rate for gas customers was $10 with an additional $10.62 per 1,000 cubic feet, according to Pepper. Beginning Oct. 1, she said the minimum gas rate will increase to $10.40 and cost an additional $11.04 per 1,000 cubic feet.

In Monday’s meeting, the council also implemented tapping fees for new gas customers.

“In the past, only water and sewer customers paid to have new lines installed. Gas customers weren’t charged tapping fees,” he said. “The city was eating all costs on gas meter (installations).”

For a new gas line, residential customers inside the city limits will pay a $600 tapping fee. Residential customers outside the city limits will pay $800.

Businesses inside city limits will pay a tapping fee of $700 for a new meter, and those outside the limits will pay $1,000.

Tapping fees for new water customers—which are $700 for residential inside city limits, $900 for outside residents, $850 for businesses inside Moulton, and $1,150 for outside businesses—have not changed.

District 4 Councilmember Cassandra Lee asked that pamphlets be handed out to all new utility customers before services for new meters are rendered so customers understand what they are paying for upfront.

The council also approved an increase for wholesale water rates, which will see West Lawrence Water Authority pay $1.90 per 1,000 gallons after the first five million, beginning Oct. 1. The water authority pays Moulton a wholesale rate of $100.86 for the first 2,500 gallons and an additional $1.35 for the next 497,500 gallons up to five million.

The wholesale rate change does not affect residential customers, Weatherwax added.

All council members were present for Monday’s meeting. Moulton City Council will meet next on Monday, Oct. 5, and hold a work session on Oct. 12.

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