Cost cutting helps keep rates down
Published 12:29 pm Friday, April 13, 2007
Vidalia Mayor Hyram Copeland never liked the decision his city was forced to make last fall.
And apparently he never stopped working to reverse the call.
The last year has been an expensive one for anyone in the city limits who prefers electric light to darkness. Utilities skyrocketed between summer and fall, leaving some residents in a financial crunch.
Tuesday night, Copeland announced an average 12-percent decrease in utility rates for residential customers starting May 1.
Natural gas prices are down slightly, in turn lowering the cost of electricity from Vidalia’s provider, Louisiana Energy and Power Authority.
But the city did some cost cutting, too.
And one key to lower bills is parked at the garbage dump.
When Copeland and staff started examining the budget with a fine-toothed comb they found a few openings, such as the garbage truck.
“Instead of buying a new garbage truck we did some preventive maintenance,” Copeland said. “With the police, it’s asking them to get six more months out of a car.”
In a crunch, the city is doing what it has not done before. And it is working.
Prices go up over time. It’s a fact of life. Vidalia’s utility rates will likely never be what they were decades ago.
Cost cutting can keep rates down as long as possible though, as evidenced in the case of Natchez Water Works. The company is asking for their first rate increase this year in more than a decade.
Vidalia found a way to cut its own costs to avoid passing the cost on to the residents.
How did they do it? As Copeland will tell you, they never gave up.