RMLD Electric Bills May Skyrocket by 9 Percent

Written by Les Masterson

News from just over the border in North Reading sheds a light on an issue that could have a major impact on Reading residents in the upcoming months.

Your monthly electric bills may increase by 9 percent starting in February if the Reading Municipal Light Department’s Board of Commissioners approves a proposal at its next meeting.

The RMLD will be in the red by the end of the fiscal year, which ends in June, if the board doesn’t find a way to bridge the gap.

John Norton, North Reading representative of the Reading Municipal Light Department Citizens’ Advisory Board, said the average residential bill could increase by 9 percent as a result and with Reading in the company's coverage area, the town could see the impact as well.

The reason for the increase is because of stagnant sales growth and rising gas prices, which is the energy source for RMLD’s generators.

Making things worse, Norton said gas prices may spike before the end of winter.

Norton said the board wanted to implement the rate increase before the end of this year, but he asked the RMLD board to wait until its January meeting to vote on the proposal. Norton’s board in North Reading, which advises the RMLD Board of Commissioners, will meet over the next month and then make a recommendation to the RMLD Board of Commissioners.

Norton said the sudden increase should have been avoided 18 months ago after one of the regular audits, but instead the electric company needs a heftier rate increase now to avoid going into the red. The RMLD’s last rate increase was three-and-a-half years ago.

In addition to the 9 percent increase, the RMLD plans to increase rates by 3.9 percent for fiscal year 2015.

North Reading selectman Joe Foti said the increase will create “sticker shock” for ratepayers – especially with another rate increase expected in July.

“Nine percent is kind of tough for people having trouble as it is,” said Foti.

Foti suggested RMLD delay part of the increase so it’s two 4 ½ percent increases spread out over the year rather than one giant 9 percent increase.

North Reading selectman Mike Prisco said the RMLD should also look at capital expenses and other expenses and see whether the electric company can reduce those costs this year to help make up some of the difference.

Norton will bring the ideas back to his advisory board, which will make a recommendation to the RMLD Board of Commissioners. The RMLD Board of Commissioners plans to take a vote on the 9% hike at its Jan. 29 meeting.