READSBORO- For years they called it their own. Since the 1930s, Readsboro Electric has been one of the town’s major assets and has provided much of the town’s electricity. According to the Vermont Public Power Supply Authority, Readsboro Electric has some of the lowest residential rates in the state. Average monthly residential bills are $27.15 for 200 kilowatt hours; $82.17 for 600 kilowatt hours; and $137.19 for 1,000 kilowatt hours. As a result, customers benefit from low electric rates. But managing the utility became a burden. Covering the costs to maintain its economic viability grew difficult, inventory depreciated, and the town implemented three rate increases to cover the costs. Now the voters of Readsboro will decide whether they will keep or sell the utility.

Article 11 in the Town Warrant asks “shall the town of Readsboro ... authorize the sale of the town of Readsboro’s Electric Department assets to the Central Vermont Public Service Corporation pursuant to the terms and conditions of the purchase and sale agreement and to take all other actions necessary to complete such sale.”

In January 2008, the selectboard unanimously approved the electric utility sale to CVPS for $167,000, including a $10,000 donation to Readsboro Elementary School. CVPS would also handle half of the town’s legal fees at the closing, assume responsibilities for all rights of way, and handle all PCB contamination when ownership changes hands. At last year’s Town Meeting, voters approved a non-binding resolution supporting the sale of Readsboro Electric. Out of 272 voters, 150 said yes, 73 said no, 44 were not sure, and five ballots were left blank.

Outgoing selectboard member Charlotte Clark supports the sale of Readsboro Electric. Clark is finishing the final year of her three-year selectboard term. She also served on the selectboard that approved the last rate increase. Clark said running Readsboro Electric became a problem when the selectboard realized there was not enough money in the budget to cover repairs and upgrades. Clark also added that the number of Readsboro Electric customers could not sustain high costs of routine maintenance.

“We didn’t have enough money to cover the day-to-day expenses,” said Clark. “It’s nearly impossible for 318 users to support a utility. The only reason they’ve kept rates low in the past is because selectboards (before us) made a point of not increasing the rates.”

Selectboard member Tony Caruso disagrees with Clark’s assessment. Caruso believes the town should keep Readsboro Electric because taxpayers will be hit the hardest. Caruso said Readsboro Electric is not in as bad shape as proponents say it is. He believes the town has an ample amount of revenue to keep the utility afloat. Caruso said the town received an additional $33,000 check from a USGen New England Inc. bankruptcy deal and an additional $10,000 that the town overpaid to an electric supplier. By the end of the year, Caruso said the town had $42,000-$43,000 in the coffers. “We spent $19,800 of that on lawyers’ fees. So if you didn’t have the lawyer (involved), we’d have $60,000 in the checkbook,” said Caruso.

When asked if Readsboro Electric could withstand another ice storm, Caruso said he is confident the utility could weather the storm, thanks to the federal government. According to Caruso’s numbers, the December ice storm cost the town $88,000. Seventy-five percent is paid by the Federal Emergency Management Agency while 12%-15% is paid by the state. Caruso estimates that Readsboro would only pay approximately $8,800. “(Readsboro Electric) could stand a few more,” said Caruso. “If nobody else gets hit in the area, then we’ll be hurting. But if everyone else does, the government pays the bill.”

Teddy Hopkins was selectboard chair when the selectboard approved the CVPS sale. Hopkins said electric rates remained low over the years because the town made minimal repairs. Hopkins added that the town also sold a bucket truck in the late 1990s, which yielded more revenue for the town. But Hopkins acknowledged that the prior selectboards (including the ones he served on) “sat on the issue for too long.” It wasn’t until the town began contracting work to outside companies that Hopkins realized Readsboro Electric was getting too expensive to operate.

Rodney Caruso is a Green Mountain Power lineman who has worked on Readsboro Electric power lines. Caruso says most of the poles and wires he’s seen aren’t in bad shape. Many of the poles and wires that were wearing out were replaced after the ice storm in December. Caruso acknowledges that infrastructure replacement is expensive but it’s not unusual. “There’s always stuff that needs to be upgraded. You always have that problem. It’s the cost of doing business,” said Caruso. “If it’s working efficiently the way it is, don’t touch it.”

The article will be voted on by Australian ballot. However a new rule allows Australian ballot articles to be discussed at Town Meeting. Town officials expect voters will have a lot to say on Article 11.