Electric rates to increase in NilesPublished 11:17pm Monday, May 24, 2010
By KATIE JOHNSON
Niles Daily Star
Niles residents will see a $2.62 average increase per 600 kilowatts on their electric bills beginning June 1.
The Niles City Council unanimously approved a 4.5 percent increase Monday night.
According to city administrator Terry Eull, Indiana and Michigan Electric has raised its wholesale power costs.
“We’re not even quite covering the costs that are being added to us by I&M,” Eull said.
The city utilities department pays about $10 million in wholesale electric costs per year.
Councilmember Georgia Boggs asked if the city has explored options to keep utility rates down.
“The electric rates are going to double in 10 years,” Eull said. “We are well on our way.”
Niles residents, however, have lower electric bills than customers in other parts of the state, he said.
“Believe it or not, with as much trouble as we’re having here, we’re cheaper than the rest of the state,” Eull said.
The city will continue offering energy conservation incentives, including a second round of the free compact fluorescent lightbulb program, later this year.