Officials field rate hike questions

ST. MARYS - Officials told residents on Monday the reasons why some monthly electric bills have jumped about 20 percent since rate changes in July.

Electric committee members and John Courtney of Courtney & Associates public utilities consultants listened to residents' concerns about the new electric rates.

City officials explained to the seven attendees the large increases occurred because officials had not taken into account fluctuating prices.

The price varies based on American Municipal Power-Ohio's prices, which depend upon the cost of resources. The city must recoup that money through the monthly electric bills, Courtney said.

City council members in September reported resident complaints about the increase that first appeared on the August utility bills.

"When it actually comes out and then you actually can figure why the bill is a lot larger, that's when the concerns come about," council member Ken Koverman said. "Obviously they are now. … I've seen my bill increase just like everybody else in the city."

Under the new plan, residential customers pay $10 per month and face three tiers for energy charges. The first 500 kilowatt-hours are billed at 11 cents per kwh. The next 1,100 kwh cost 10 cents per kwh and any use over 1,600 kwh costs 9 cents per kwh.

Commercial single-phase users also will see a $10 monthly charge, and commercial 3-phase users pay a $15 monthly charge.

All commercial users have the same energy charges. The first 500 kwh cost 14 cents per kwh. The next 1,500 kwh cost 12.5 cents per kwh, and any use more than 2,000 kwh costs 12 cents per kwh.

Customers who use at least 500 kilowatts have a $50 monthly customer charge, a demand charge of $15 per kwh and an energy charge of 5 cents per kwh.

The industrial power rate for customers who use at least 3,000 kwh per month includes a $100 monthly charge, a demand charge of $20 per kilowatt and an energy charge of 4 cents per kwh.

Courtney said he calculated the rates himself.

"One of the hardest things in rate design was mitigating the impacts on the costumers," he said.

"When we compare our rates that we have right now versus DP&L, AEP and places like that, we're very competitive here," mayor Patrick McGowan said, adding that rates are comparable to those in Wapakoneta and Celina.

The rate changes will help bolster the city's electric fund, which receives only 25 percent of the existing kwh tax income. The tax collects about $820,000 each year. Council members voted last year to put 75 percent of that revenue into the general fund.

"The electrical system in our town was pretty much in shambles," council member John Bubp said. "We've had to spend millions of dollars. Where does that money come from? It has to come from the taxpayer."

The increase also was heightened over the past year with the customer service charge being increased in stages from $3.50 a month to $10, Courtney said.

The charge is to cover the cost it takes to supply a costumer with electricity regardless of how much they use. The $6.50 increase may have a greater impact on percent changes between bills than the usage rate, he said.

Utility office supervisor Carol Lengerich has sat down with dozens of residents to walk them through the changes on electric bills, public safety supervisor Greg Foxhoven said.

"She does a very good job at explaining some of it because it's a lot of information to just try to understand. We try to encourage folk with questions to go and see Carol," he said.