Close Menu
Invest Insider News
    Facebook X (Twitter) Instagram
    Tuesday, December 16
    Facebook X (Twitter) Instagram Pinterest Vimeo
    Invest Insider News
    • Home
    • Bitcoin
    • Commodities
    • Finance
    • Investing
    • Property
    • Stock Market
    • Utilities
    Invest Insider News
    Home»Utilities»Rate increases considered
    Utilities

    Rate increases considered

    August 20, 20245 Mins Read


    Orangeburg’s Department of Public Utilities is proposing several options for raising its rates, or not, as part of its 2024-2025 fiscal year budget.

    Orangeburg City Council gave first reading last week to DPU’s budget but did not decide what to do about the department’s rates.


    Orangeburg County Council: Voters asked to renew sales tax; 132 projects could be funded

    Instead, council will spend more time looking at the options. Council also wants to study how the proposed new rates will compare to other utilities around the state.

    Councilman Richard Stroman abstained from the first reading of the budget.

    DPU Manager Warren Harley presented Orangeburg City Council with four rate options. Three include a rate increase.


    Bamberg, Calhoun, Orangeburg projected to lose thousands of residents

    “We propose a rate increase that would support and continue our capital improvement plan,” Harley said.

    People are also reading…

    The proposed rate options:

    • Option 1: Increase water and wastewater rates only.

    The proposal would generate $2.9 million for the utility.

    • Option 2: Across-the-board increases on water, wastewater, electricity and natural gas. The option would generate $7 million for the utility.

    “I know council may grow weary of the alternating back and forth on the increases,” Harley said. “Option 2 was an effort to provide council and the customers of the city a break because if we did option two, we wouldn’t have to revisit this for another several years. We wouldn’t need to bring it back up until around 2028.”

    “If you do it upfront, it is a little cheaper than spreading it out over time,” Harley said.

    Under option 2, inside city residents would see a 7.1 percent increase, or $18.46 on average on their total bill

    Outside city residents under this option would see a 9.7 percent increase, or $29.22 a month.

    • Option 3: This option would be a hybrid of option 1 and option 2, where the water and wastewater rate increase in option 2 would be lowered and replaced with the option 1 water and wastewater rate increase.

    • Option 4: Leave rates the same.


    Get TheTandD.com for $1

    Councilwoman Sandra Knotts asked Harley how regulations impact the utility and its customers. Harley said in general regulations cause the utility’s costs to go up. The increases are either passed onto the customer or absorbed by the utility.

    “If you look at the current year’s budget, the water and wastewater rates are not covering the cost that we see,” Harley said. “We are losing money.”

    Stroman noted that it is not uncommon in business to make money on some services and lose money on others.

    “I just can’t go along with a rate increase right now,” Stroman said. “I am sorry. People are having a hard time paying the bill now. Maybe another year we will look at.”

    Councilman Dr. Kalu Kalu said the most viable option was option 2.

    “We have to bear in mind this is just the first reading that we are undertaking,” he said. “We need to pass first reading and then take the time to absorb the numbers within ourselves to see clearly where we are coming from. Whether we want to increase the rate or not. This is not the time for us to increase or not to increase. This is a time to analyze.”

    Mayor Michael Butler said, “We just can’t hear something and say, ‘rate increase’ and just shut it down. We do have to analyze it and see what the numbers really look like.”

    “I don’t like to hear rate increases, but we also have to look at the fact that we are custodians over DPU and the progress of DPU,” Butler said. “We have to look at the fact that you all have to move that company.”

    “When we look at the budget, we look at the budget for the citizens and we look at the budget for the company which we are the board of directors for,” Butler said.

    Councilman Jerry Hannah said doing nothing is not an option as the more rate increases are delayed, the greater likelihood that future rate increases will have to be greater to offset those years when an increase did not occur.

    “That can can’t continue to get kicked down the road,” Hannah said.

    Councilwoman Annette Dees Grevious asked how DPU’s rates compare to other providers.

    Harley said if approved, the rate increases would put the city in front of Rock Hill but still less expensive than Greenville, Columbia, Aiken, Sumter, Lexington, Charleston, Camden and Dorchester County.

    Overall budget

    Harley said the budget does not include an increase in positions or a cost-of-living increase. It does include performance-based merit pay for employees.

    The driver of expenses are an increase in system repairs, inflation and state mandates for the state’s retirement system, he said.

    The utility proposes spending about $44 million for capital projects.

    “The electric division and the water division will see the lion’s share of that money,” Harley said.

    He said the water department will spend about $34.2 million on projects and the electric department about $12.4 million.

    Harley said the budget also calls for the transfer of $6.1 million to the city, which is unchanged from the current fiscal year. That would leave the utility with a net profit at the end of the year of $14.1 million.

    In addition to giving first reading to DPU’s 2024-2025 fiscal year budget, council gave unanimous first reading to changes to the 2023-2024 DPU budget.

    “Over the year our numbers change,” Harley said.

    The utility’s revenues exceeded its expenses for the current fiscal year by $14.5 million, though the numbers could change before third and final reading.

    After a $6.1 million transfer from the utility to the city’s general fund budget, the utility will see a profit of about $8.4 million for the current fiscal year.

    Contact the writer: gzaleski@timesanddemocrat.com or 803-533-5551. Check out Zaleski on Twitter at @ZaleskiTD.

    Get Government & Politics updates in your inbox!

    Stay up-to-date on the latest in local and national government and political topics with our newsletter.



    Source link

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
    Previous Article$1,000,000 BTC in 2027? Analyst Says Bitcoin Could Be Mirroring Japanese Stock Market’s Early Years
    Next Article Bitcoin Tops $61,000 as Volatility Hovers Near Yearly High

    Related Posts

    Utilities

    Utilities Down, but not by Much on Defensive Bias – Utilities Roundup

    December 12, 2025
    Utilities

    AI Is Great for Utilities. It’s Also a Political Headache

    December 12, 2025
    Utilities

    Clitheroe: Huge United Utilities planned car park approved

    December 9, 2025
    Leave A Reply Cancel Reply

    Top Posts

    How is the UK Commercial Property Market Performing?

    December 31, 2000

    How much are they in different states across the US?

    December 31, 2000

    A Guide To Becoming A Property Developer

    December 31, 2000
    Stay In Touch
    • Facebook
    • YouTube
    • TikTok
    • WhatsApp
    • Twitter
    • Instagram
    Latest Reviews
    Bitcoin

    Bitcoin Could Deliver 15x ROI by 2026 as VET and OKB Gain Institutional Attention

    September 5, 2025
    Bitcoin

    Bitcoin Forming A Signal That’s Usually “Very Bullish,” Analyst Says

    July 19, 2024
    Bitcoin

    Wait Until Q4 2024 for BTC Prices to Rally

    August 22, 2024
    What's Hot

    Business Reporter – Finance – What does a buoyant market mean for property developers?

    July 8, 2025

    Stock Market Today: Dow futures lean higher after first full week of earnings

    October 25, 2024

    Palantir executive Taylor Ryan sells $5.55 million in stock By Investing.com

    October 30, 2024
    Most Popular

    Gold soars to near $3,600, may rule elevated for the remainder of the year

    September 5, 2025

    Oil rises as demand concerns ease on US jobs data, geopolitical tensions By Reuters

    August 8, 2024

    Top 3 Utilities Stocks That Could Lead To Your Biggest Gains This Month – Alternus Clean Energy (NASDAQ:ALCE)

    August 8, 2024
    Editor's Picks

    Foreign investors return to China’s stock market

    November 15, 2025

    Parie de milliard de dollars sur le Bitcoin : L’audacieux pari d’une entreprise

    May 2, 2025

    Utilities, les investissements augmentent en Italie : 20,5 milliards d’euros en 2024. Les revenus baissent, les bénéfices s’envolent

    January 29, 2025
    Facebook X (Twitter) Instagram Pinterest Vimeo
    • Get In Touch
    • Privacy Policy
    • Terms and Conditions
    © 2025 Invest Insider News

    Type above and press Enter to search. Press Esc to cancel.