Morgan City gets hit with higher power costs; expect hike in utility bills

Morgan City households and businesses should brace for a significant increase in their electric bills next month. The city government has already had its bill-shock moment.

Council members heard that shoe drop at Tuesday's monthly meeting. Councilmen also heard a mostly favorable audit report and passed a stiff surcharge for those who pay utility deposits without a U.S.-issued ID.

The Positive Image recognition went to Lt. Col. Cory Williams, 1st Sgt. Bobby Stubbs and the members of Morgan City High's Junior ROTC program.

Many Morgan City utility customers can expect to pay more next month because the city government received a significantly larger than usual bill this month for the power it purchases through the Louisiana Energy and Power Authority.

The most recent LEPA bill was for $1.25 million, Finance Director Deborah Garber told the council. That's the highest such bill since 2014.

Seven months into the city budget year, the city is $400,000 over budget on the cost of purchased power and $125,000 over budget on the cost of natural gas purchases, Garber told the council.

After the meeting, Garber said it's difficult to predict how much more individual customers will have to pay because circumstances vary. Those circumstances include the age of homes, air conditioning usage and insulation.

Morgan City is one of 19 municipal members of LEPA, which was created by the Legislature to provide a stable source of power for Louisiana communities.

Utilities across the country are reporting rising costs because of a kind of perfect storm. Energy demand has risen faster than supply after the 2020-21 COVID shutdowns, and much of the nation has sweltered during an unusually hot summer, straining the supply of electricity.

Sanctions targeting Russia's energy exports in retaliation for its invasion of Ukraine have also pushed prices up. And energy industry officials have blamed Biden administration rules designed to combat carbon emissions.

Utility deposits

By a 4-1 vote, the council passed an ordinance raising the required utility deposit to $1,000 for customers without valid U.S.-issued photo identification, such as a U.S. driver's license or passport. The deposit for residential customers with photo ID remains at $100.

For delinquent residential, commercial and industrial customers, the deposit will be an average of the highest three bills in a 12-month period.

Mayor Lee Dragna had sought the higher deposits for people without ID, saying the city had been stuck with unpaid utility bills left behind by people without IDs.

Councilman Steve Domangue say he thinks the city is trying to attract new residents, and wonder if some other method could be found.

Councilman Ron Bias said some longtime residents of Morgan City don't have photo IDs.

Dragna's response: The new rules won't require people already receiving utilities to pay the higher deposit.

Bias cast the only vote against passage of the ordinance.

Audit

Auditor Gerald A. Thibodeaux Jr. of Kolder, Slavin and Company said the yearly audit is generally positive for the city's handling of its finances.

The city received an adverse opinion because the city marshal and city court budgets are handled separately rather than being included in the main budget.

The audit also found instances in which the city didn't amend its budget when the general fund and the federal grants fund varied from the budget amounts by more than 5% as required by the state Local Government Budget Act.

Thibodeaux called the misstep "not uncommon" and said it carries no penalties.

"It probably needs to be monitored more closely," he said.

JROTC

The council, led by Councilman Tim Hymel, praised the Morgan City High JROTC program for its participation in community projects and its success in sending cadets on to college or the military.

The program may be best known in the community for serving as the color guard at public events. But JROTC also offers students training in areas such as leadership and life skills. Students in JROTC also have the opportunity to spend a week of military life and learning at Camp Beauregard or, this summer, the Naval air station at Pensacola.

Students at Patterson and Berwick high schools also participate in Morgan City High's JROTC program.

Williams and Stubbs are both veterans who have served tours in combat zones.