Century And State Prison System Reach $181K Utility Rate Increase Agreement

February 18, 2021

The Town of Century and the Florida Department of Corrections have come to terms on utility rate increases.

At a minimum, the new rates for the Century Correctional Institution are forecast to net $181,121 annually for Century.

Under a proposed contract, the FDC will pay $2.75 per 1,000 gallons of water, up 20.6% from the current $2.28. For sewer, the FDC will pay $4.45 per 1,000 gallons, a 36.9% increase over the current $3.25.

The biggest financial gain for Century will come on natural gas. The Department of Corrections currently pays no monthly base rate and $0.195 per 100 cubic feet. That will increase to a $4,000 monthly base rate and $0.265 per 100 cubic feet, plus the cost of natural gas. Based upon typical use, Century will see their annual margin increase 170% from a current $35,900 to $96,781 per year under the new agreement.

“That’s game changer for our gas system,” Interim Town Manager Vernon Prather said.

Improper and late billing by the town have plagued the town’s relationship as a utility provider for the state prison. That has led to disputes that appeared to be headed to court, but both sides will concede with the new rate structure.

“My goal in all this was negotiate, not litigate,” Prather said. He said that by forgiving any possible back billing, the town will come out financially ahead in a matter of just a few months.

“It’s a good restart for the town,” he said. “I felt like they (FDC) dealt with the town in a fair manner.

After legal review, the Town of Century and the Florida Department of Corrections are expected to sign the new rate agreement within about 30 days.

Pictured: A Town of Century water tower at the Century Correctional Institution. NorthEscambia.com photos, click to enlarge.

Comments

6 Responses to “Century And State Prison System Reach $181K Utility Rate Increase Agreement”

  1. Well on February 20th, 2021 7:48 pm

    Now how we doing on that Bridge ?

  2. Chelleepea on February 18th, 2021 12:44 pm

    Keep up the good work! We’re making good progress!

  3. Hmmm on February 18th, 2021 12:04 pm

    Wow. Amazing what a little common sense can get done. Good going, Prather!

  4. Inigo Montoya on February 18th, 2021 10:33 am

    Well done!

  5. new to Century on February 18th, 2021 10:24 am

    Sounds like our Interim Town Manager Vernon Prather earned his pay today. Appears that Century is moving forward….maybe slowly but at least in the right direction.

    Good Job, Mr. Prather

  6. bob on February 18th, 2021 9:40 am

    “…forecast to net $181,121 annually for Century.”

    “That’s game changer for our gas system,”

    Now they can repair their infrastructure without financial assistance from other agencies? No longer financially dependent on other organizations to fix their own problems?

    Will this also cover pilferage, the incompetent billing process, and individuals that do not get billed for utility service/do not pay for utility services?

    Will there be any leftover money for additional personal loans to board members?

Written by William Reynolds · Filed Under News