Consumer in High Point can expect to see a ‘huge’ hike in electric rates —-as high as 29 percent —- unless the city’s power provider restructures its debt:

A full debt restructuring would limit rate increases to a total of 10.9 percent over the same period but would carry risks, such as unforeseen changes in the economy that could harm ElectriCities’ credit rating and limit its ability for future borrowing.

ElectriCities says the increases are needed because of the co-op’s rising expenses and debt associated with investments made in the Catawba Nuclear Station in South Carolina – where its power is generated – combined with lower consumer demand for electricity and other factors.

This is complicated stuff, involving Electricities and N.C. Municipal Power Agency Number 1 —-not the same thing. CJ’s Michael Lowrey has an excellent primer, but the bottom line is High Point took a huge share in the Catawba nuclear reactor at the worst possible time —-30 years ago —- to invest in nuclear power. With the disaster in Japan, investment in nuclear power certainly doesn’t look any more promising.

In the meantime, NCMPA is borrowing to cover the interest on its debt —never a good thing—-meaning “relatively high rates are likely to continue for the foreseeable future.”

Exactly what consumers need right now.

Update: Michael Lowrey e-mailed and said NCMPA is no longer borrowing to pay interest. But it’s still saddled with considerable debt.