May 31 - McClatchy-Tribune Regional News - Nikie Mayo Sun Journal, New Bern, N.C.

Electric bills in New Bern are expected to go up by 11 percent in July.

For the average homeowner, that amounts to about $17 more. But that's based on an average monthly bill of about $160, and monthly bills are largely tied to whether a house is energy-efficient and how many people live there, according to Jon Rynne, the director of electric utilities for the city.

It's costing the city more to supply power to its customers, Rynne says.

Besides that, the city needs more cash on hand to pay the upfront costs associated with providing electricity to the new subdivisions being built here.

"We get paid back for that, but it's spread out over time," he said Friday, as he explained the proposed increase to aldermen during a budget work session.

City Manager Bill Hartman said the city's electric utilities operate on a "razor-thin" margin and the department does not have enough cash on hand to act as a buffer in case the city's demand does not generate the money expected.

Miscalculating that demand by just one percentage point can cost the city $450,000, he said.

"We should have $5 million in that (buffer) account and we don't even have a million," Hartman said.

Alderman Barbara Lee worried about how to explain the increase to residents she represents, particularly those who are already struggling to pay their bills.

"People panic at the idea," she said. "What can I say? Even though we need it, it's hard to explain it."

City leaders said some of the higher electric bills -- $400 and beyond -- can be tied to houses that meet only the minimum standards for energy efficiency. Many of those houses are rental properties, Hartman said.

"The people who can least afford to pay a high electric bill are the ones who live in places that have the worst insulation," said Mayor Tom Bayliss.

Rynne said the city offers free energy audits by request or if a person's bill seems particularly expensive.

Bayliss asked if the city could then turn over the list of needs for a particular house to some volunteer group that might be able to help with the upgrades.

City leaders also asked Rynne whether there is a meter available that will translate the kilowatt hours a person uses into the cash it costs. Each kilowatt hour costs a resident 11 cents.

"The problem is that people have no idea what they've spent on electricity at the end of a month," Bayliss said. "It's not like a credit card where you have some idea what the bill is going to be. ... If people had the ability to look at a meter and see that they've spent $35 in two days, they'd say, 'My God, what's on in this house?'"