City works hard to keep electric rates low, but
increases are coming
By Loretta Cozart
During the Kings Mountain City Council meeting on July 26, Assistant City Manager Nick Hendricks explained a necessary update on utility costs that will increase electric rates by approximately 5 percent.
According to Hendricks, Natural Gas prices impact 85 percent of Kings Mountain residents through their electric bills because Kings Mountain Energy Center is a natural gas fired power plant.
Until recently, natural gas prices remained low. But prices have been on a steady increase, climbing 200 percent since 2020, Hendricks said. Since then, natural gas prices have increased from $2.80 to $6.00 per dekatherm unit now. And that cost could increase to $8 soon. Futures indicate those rates could go up to $11 by 2023.
“The only time we increase rates is when we increase the base rate, and we have not increased our base rate throughout the last several years. Everything is a total pass through, and we are going to experience tough times throughout this summer and into winter,” Hendricks said. “There is nothing we can do about this whatsoever.”
“Since 2021, the cost of all energy sources has increased dramatically. Electricity costs are going up. The average increase nationally is 25 percent. Other cities have raised their rates between 25 percent and 32 percent in the last month,” he said. “The national average for residential electricity is approximately 14.7 cents per kilowatt hour.”
The contract Kings Mountain has, allows the city to switch to cheaper energy sources without penalty. “The city’s contract allows for that flexibility. If we can find cheaper sources, we can buy it,” Hendricks said. But with all energy sources costing more now, natural gas is the best option.
“You will see me recommend an increase in your purchase power adjustment,” he told city council. “Today our citizens pay 9.4 cents per Kilowatt hour. With the new increase, I am going to be recommending for the current billing cycle 10 cents per Kilowatt hour, which is 4.7 cents lower than the national average. And our increase is only a five percent more than what our citizens currently pay,” Hendricks said.
In 2018, the cost for Kings Mountain’s electricity was 10 cents per Kilowatt hour, and the city lowered that rate for 2019. Relatively speaking, citizens will see a little bump in their next bill, but it will be no more than the amount charged by the city in 2018.
“We’ve made some very good decisions to keep our electric rates low and the increase only addresses the cost we pay for the commodity. When citizens see their bills, I hope they know we are trying our best to hold these prices low. But this issue is bigger than all of us,” he said.
During the Kings Mountain City Council meeting on July 26, Assistant City Manager Nick Hendricks explained a necessary update on utility costs that will increase electric rates by approximately 5 percent.
According to Hendricks, Natural Gas prices impact 85 percent of Kings Mountain residents through their electric bills because Kings Mountain Energy Center is a natural gas fired power plant.
Until recently, natural gas prices remained low. But prices have been on a steady increase, climbing 200 percent since 2020, Hendricks said. Since then, natural gas prices have increased from $2.80 to $6.00 per dekatherm unit now. And that cost could increase to $8 soon. Futures indicate those rates could go up to $11 by 2023.
“The only time we increase rates is when we increase the base rate, and we have not increased our base rate throughout the last several years. Everything is a total pass through, and we are going to experience tough times throughout this summer and into winter,” Hendricks said. “There is nothing we can do about this whatsoever.”
“Since 2021, the cost of all energy sources has increased dramatically. Electricity costs are going up. The average increase nationally is 25 percent. Other cities have raised their rates between 25 percent and 32 percent in the last month,” he said. “The national average for residential electricity is approximately 14.7 cents per kilowatt hour.”
The contract Kings Mountain has, allows the city to switch to cheaper energy sources without penalty. “The city’s contract allows for that flexibility. If we can find cheaper sources, we can buy it,” Hendricks said. But with all energy sources costing more now, natural gas is the best option.
“You will see me recommend an increase in your purchase power adjustment,” he told city council. “Today our citizens pay 9.4 cents per Kilowatt hour. With the new increase, I am going to be recommending for the current billing cycle 10 cents per Kilowatt hour, which is 4.7 cents lower than the national average. And our increase is only a five percent more than what our citizens currently pay,” Hendricks said.
In 2018, the cost for Kings Mountain’s electricity was 10 cents per Kilowatt hour, and the city lowered that rate for 2019. Relatively speaking, citizens will see a little bump in their next bill, but it will be no more than the amount charged by the city in 2018.
“We’ve made some very good decisions to keep our electric rates low and the increase only addresses the cost we pay for the commodity. When citizens see their bills, I hope they know we are trying our best to hold these prices low. But this issue is bigger than all of us,” he said.

























































