West Point City Council has scheduled a second work session on its 2009 budget after some members questioned a proposed utility rate restructuring.

In a budget overview presented to council members last week, City Manager Ed Moon had estimated some of the West Point’s 1,500 residential customers would see utility bills rise an average of $10.

“The problem is the timing,” said Councilman Joe Downs. “We do need to look at a change, but is there a way not to do the whole package at this time?”

Other council members agreed with Downs.

“People are struggling right now,” Councilwoman Sandra Thornton said.

Anne Wallace also questioned the timing with the national economy circling the drain.

“A lot of cities are freezing their rates,” she said.

The rate restructuring comes after a study by Municipal Electric Authority of Georgia was completed earlier this year. West Point’s utility rates haven’t been changed in 16 years, but the city bears the distinction of being the MEAG city with the worst utility rate structure. Restructuring the rates was a requirement for the millions of dollars in grants and loans West Point received to upgrade its infrastructure in preparation for the Kia Motors plant and its suppliers.

“If we go to MEAG and ask for more grants and loans, we won’t qualify because they’ll tell us we’re not managing our system correctly,” said Councilman Darren Kelley. Kelley said the city’s electric system needs upgrades, even if Kia wasn’t building in the city.

“We have had two blackouts in the last year because of aging equipment,” he said. “What’s worse? Not raising the rates or risking another blackout. Maybe it’ll get to the point where we have electricity six days a week.”

The proposed package lowers commercial and industrial electric rates to make the city competitive with other utility providers.

The package increases the “base rate” for residential customers, which means the city no longer will have to use a “power cost adjustment.” The power cost adjustment is a rate the city charges to make up the difference between the base rate and the actual cost the city is paying for the electricity.

Since the city wouldn’t be using the power cost adjustment any more with the proposed new rates, proponents of the restructuring say electric bills will be more equitable and some residents’ bills may even decrease.

“The big advantage of this is that there won’t be any more wild swings in the bill,” said Mayor Drew Ferguson IV. “It will be more accurate because I’ll pay for what I use. With the power cost adjustment, I’m subsidizing my neighbors. If we increase the base rate, if I conserve (on my utilities) it may lower my bill.

Downs and others suggested not lowering the commercial rates this year or not increasing the base rate for residential customers that much. Moon said if the base rate was increased by half, residential customers still would pay the same amount as before because the city would be forced to use a power cost adjustment again.

The council will hold another budget work session after its regular meeting Monday to discuss budget issues again and hold a public hearing Dec. 4. A vote is set for Dec. 8.

Jennifer Shrader can be reached at jshrader@la-grangenews.com or at (706) 884-7311, Ext. 236.