Dalton Utilities’ budget proposal includes rate increases for OptiLink TV, water, wastewater and natural gas

Published 5:00 pm Thursday, October 21, 2021

Dalton Utilities is looking at rising operating expenses and a lower operating margin in 2022, according to a preliminary budget presented to board members this week. The preliminary budget includes 5.5% rate increases for both water and wastewater as well as rate increases for natural gas and OptiLink cable television.

The budget, including the rate increases, is just a proposal, and nothing is definite until the board members vote on the proposal, which is scheduled to happen at their Monday, Nov. 15, meeting.

The preliminary budget forecasts 2022 revenues of $268.7 million, up from a projected $222.1 million this year. It forecasts expenditures of $226.3 million, up from $178.9 million this year. That would give the utility a 2022 operating margin of $42 million, down from a projected $43.2 million this year.

The preliminary budget contains no rate increase for residential electricity.

The utility said an average residential customer using 7,500 gallons of water paying $27.90 per month now could expect to pay $29.32 after that rate increase, which would become effective Jan. 1, 2022.

That same residential customer currently spending $35.43 each month for wastewater could expect to pay $37.37 if that rate increase goes into effect Jan. 1, 2022.

The average residential customer currently spending $92.63 for natural gas each month could expect to spend $95.69 if that rate increase takes effect April 1, 2022. For residential and commercial customers there would be a $1 increase in the base fee and a 2.5 cents per therm increase. A therm is a unit of natural gas.

“It is important to note that the rate increase for natural gas does not take effect until after the coldest months, April 2022, meaning the impact of the rate increase for 2022 will be far less than if it happened before or during the cold winter months, when gas usage is at its peak,” the utility said in a statement.

These projected totals assume natural gas prices remain the same. The current forecast for higher natural gas prices would affect Dalton Utilities’ residential natural gas customers’ heating bill.

OptiLink TV rates would increase $3 a month for expanded and $5 a month for supreme starting on Aug. 1, 2022.

“Increased utility costs are due to upward cost pressures from our upstream providers,” said CEO Tom Bundros. “The cable TV rate increase, effective August 2022, is due to increased content cost from our content providers. As a reminder, we do not make a profit on cable TV, even after the rate action takes effect.”