East Point Sound off: Former Councilwoman Nanette Saucier (Ward C At-Large) Sounds Off Over City’s Utility Billing Situation

East Point Utility Rate Increase Appears Unavoidable as City Delays Action on Known Deficit

By Nanette Saucier, Former East Point Ward C At Large Councilmember

A utility rate increase appears inevitable. The magnitude of that increase, however, will depend largely on how long the City Manager and City Council continue delaying corrective action to address a financial shortfall they have known about since June 9, 2025.

At a recent meeting, City Council chose to postpone any decision regarding electric utility rates until receiving a new rate study from Electric Cities of Georgia (ECG). What makes that decision noteworthy is that Council already possesses a current rate study. On June 9, 2025, Cathy Johnson of ECG presented the findings directly to City Council, outlining the utility’s financial condition and identifying a significant operating deficit.

According to the presentation, the Electric Utility generated revenues of approximately $44.813 million while incurring expenses of $49.392 million, resulting in a deficit of roughly $4.579 million.

A contributing factor to this deficit appears to be the utility’s failure to implement the City’s approved Summer and Winter electric rate schedules for at least three years. Instead, customers were reportedly billed under the lower Winter Rate structure year-round, reducing revenue collection below the level necessary to cover operating costs.

Questions remain about how this occurred. The rate structure is clearly established in City Ordinance Section 8-2106, which specifies separate Summer and Winter rates for residential electric service. Summer rates, effective from May through October billing cycles, include higher energy charges designed to reflect seasonal demand and operating costs. Winter rates, effective from November through April, provide a different pricing structure.

Despite being aware of the utility’s negative financial position, City Council elected to cover the shortfall by drawing funds from the Electric Reserve Fund. Under the City’s Reserve Levels Policy, the Electric Fund is required to maintain a reserve equal to four months of operating expenses, or a minimum balance of $15 million. This policy serves as a financial safeguard intended to ensure the long-term stability of the utility.

Using reserve funds to subsidize ongoing operating deficits raises concerns about compliance with the City’s own financial policies. Any funds withdrawn from the reserve must eventually be replenished, creating an additional financial obligation for the utility.

As a result, the City now faces a dual challenge: generating sufficient revenue to restore reserve balances while also addressing the existing operating deficit. Yet rather than returning to the rate structure established by ordinance, City Council has chosen to continue relying on reserve funds while awaiting another rate study on issues that have already been documented.

Critics argue that this approach risks further weakening the City’s financial position and could ultimately require larger rate increases in the future. The longer corrective action is delayed, the greater the likelihood that residents will bear the cost through more substantial rate adjustments.

The issue now before City Council is straightforward: Will elected officials follow the City’s ordinances and financial policies to restore the utility’s fiscal stability, or will they continue a course that increases financial risk and potentially places a greater burden on taxpayers in the years ahead?

**Editor’ Note: Former Councilwoman Nanette Saucier served two terms as the Ward C At-Large Representative From 2014-2022**

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