ELIZABETH CITY

Electric rates are dominating debate leading up the Oct. 6 City Council election. Other issues include concern about youths, jobs and gangs.

Eight of 17 candidates vying for two seats in each of four wards cite high electric rates as the city’s biggest problem and vow to make changes despite an ironclad contract that has controlled prices for nearly 30 years.

Driven by public complaints, candidates have made promises that include renegotiating the contract with Electri-Cities, absorbing more rate increases into the city budget and putting a stop to transferring electric profits to the general fund.

Some have said that nothing can be done for now.

Last year, electric rates jumped 18 percent to $138.23 for 1,000 kilowatt hours, including all basic charges. For comparison, Albemarle Electric Membership Corp., another local provider, charges $118.40, according to a rate chart.

Many candidates say lower-income customers cannot pay the bill. From January through June, the city turned off power to an average of 246 customers per month, or 2 percent of 12,200 customers, according to a chart provided by the city.

An average of 3,310 were delinquent each month. Most cutoffs are repeats, City Manager Rich Olson said.

Despite campaign promises, solutions are complicated.

In 1988, the City Council hired a team of attorneys that unsuccessfully sought a way out of the contract. Officials have tried and failed since.

Elizabeth City has absorbed some rate increases over the years. To help lower electric bills, the city offers home-owners a free energy audit. If the audit uncovers problems, about $75,000 in grant money is available to make improvements, such as installing insulation. There is a limit of $3,500 per home.

Olson and the City Council have been criticized for transferring to the general fund $1.1 million annually from $39.3 million in gross revenues produced by the electric system.

But without the transfer, the city would have to raise taxes by at least 8 cents per $100 of value, Olson said. Many electric customers live outside the city and do not contribute to the tax base.

Of the remaining $38.2 million, $17.5 million goes toward buying power, Olson said. Another $15 million goes toward paying off debt owed for building nuclear power plants in the 1980s. The rest goes toward running the electric department, including employees and equipment.

Elizabeth City is one of 32 cities that formed the North Carolina Eastern Municipal Power Agency, which falls under the auspices of Electri-Cities, a nonprofit organization formed in 1965 by the municipalities.

The agency still owes $2.3 billion on power plants owned and operated by Progress Energy. Elizabeth City’s debt share is $104 million, Olson said. Some officials remain hopeful the rate can go down when the debt is paid off.

The agency buys power generated by the Shearon Harris nuclear plant in Wake County, two nuclear plants in Brunswick County and two coal-powered plants in Person County.

Coal is up to about $85 per ton, less than last year but up from $30 per ton in 2002. Uranium needed to produce nuclear power costs $50 per pound, down from more than $120 per pound last year but up from $20 a pound seven years ago.

After the energy shortages of the 1970s, cities seeking reliable power sources signed a 45-year contract in 1981 to finance construction of power plants, including three nuclear plants. Criticism began almost immediately.

Construction costs of the Shearon Harris nuclear power plant alone rose to $2.4 billion from the $800 million initial estimate, causing electric rates to rise