MARIETTA - The City Council will decide tonight whether to hike electric bills for Marietta Board of Lights and Water customers.

The city-owned utility is advising hiking residential bills by an average of 7.78 percent and commercial bills by between 5 and 12 percent.

The rate hike would go into effect Feb. 1 if approved, said Bob Lewis, general manager for the Board of Lights and Water.

Councilman Philip Goldstein said he will vote against the increase because it is too high.

"While there is a need to raise the rates as the cost to the BLW have been increased, I would have preferred to have used $1 million from reserves to lessen the impact of the increase. Many residential and business customers are in a bind and this is not a good time to be raising the rates. Reserves are there to fall back on in difficult times," Goldstein said.

BLW reserves are at $23.7 million, Lewis said.

Mayor Bill Dunaway, who chairs the BLW, said if the city dips into its reserves, it may impact Marietta's bond rating.

"I think it's imprudent as a business person to go into our reserves below the targeted reserves," Dunaway said.

BLW policy requires maintaining $20.1 million in reserves for emergency operation for one month and to fund committed capital projects and governmental commitments such as transportation projects, Lewis said.

The average monthly power bill for residential use would increase by 7.78 percent or $5.37, rising from $69.03 to $74.40.

The average resident in Marietta uses 850 kilowatt-hours. That number may seem low because Marietta has so many apartments, Lewis said.

For a residence that uses 1,000 kilowatt-hours, the percentage would rise by 7.96 percent or a $6.32 increase, increasing the monthly bill from $79.42 to $85.74.

For a residence that uses 2,000 kilowatt-hours it amounts to an 8.25 percent increase or $12.64, rising from a monthly bill of $153.21 to $165.85.

"Even with the increases, Marietta Power's residential rate is still lower than Georgia Power or Cobb EMC by 10-15 percent," Lewis said.

Commercial customers will receive increases ranging from 5 to 12 percent. Increases are determined on the size and energy use characteristics of the customers. More than 50 percent of the BLW's commercial class customers would receive increases in the 5 percent to 8 percent range. With the increase, Marietta Power's rates will still be lower than Georgia Power or Cobb EMC by 4 to 14 percent, Lewis said.

Power costs for Marietta from the Municipal Electric Authority of Georgia (MEAG) have risen by $11.2 million for this calendar year, while the last three months, BLW's power sales are down about 5 percent from the previous year. Lewis said he's cut that $11.2 million increase from MEAG down to $7 million by cutting FY 2009 capital costs and operating expenses.

Dunaway said, "The city cannot absorb $7 million without raising taxes or going below our targeted reserves."

Water and sewer rates for BLW customers increased twice last year. In January 2008, water rates increased 14 percent and sewer rates went up six percent. On Oct. 1, water rates went up 24 percent, and on Nov. 1, sewer rates went up seven percent.

The city-owned utility has about 41,000 electrical accounts, 26,200 of which are inside the city limits. It has about 18,000 water and sewer customers, and contributes $10.5 million to the city's general fund each year.

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