No end in sight
Published 12:00 am Tuesday, June 10, 2008
By By JESSICA SIEFF / Niles Daily Star
NILES – With the approval by the Niles City Council at Monday night's meeting of a 7 percent increase in electricity rates – there seems to be no end to the economic crisis that is tugging at the wallets of Niles residents.
"I know it don't seem like much of an increase," said Niles resident Jack Luse, in an address to the council. But the state of the economy, he said has everyone hurting. "You've got to hold it to an end. People are hurting in this town."
The council heard those statements – still – there seemed little hope that it would change the outcome of the vote. The increase comes as a part of the city's contract with Indiana Michigan Power Co. The stipulation is called a 'true-up' which allows for increases based on the difference in estimates and actual costs from the year before, leaving little room for the council to prevent hikes like this one in residents' electric bills.
According to the report prepared for the council by Utilities Department Manager James Lehmkuh, "demand and energy" rates were "out-dated' when compared to today's costs.
Still, noted City Administrator, Terry Eull, rates for power in Niles continue to be "some of the cheapest in the country." The council is very concerned about the increase, he added, "unfortunately, I don't see an end in sight."
And suggestions for solutions fell relatively thin. Councilman William Weimer wondered if more information could be provided on how to use electricity during non-peak times. Such action could have a "direct impact" on utility costs – but widespread action to use a bulk of the city's electricity at odd hours – seems unlikely.
Niles residents aren't alone in the hike. "I don't think everyone realizes how many towns are involved in our group rate," said Councilman William Skalla. There are 11 municipalities in all, including South Haven, Sturgis, Paw Paw and Mishawaka – and each will see their own increases.
Niles' increase of 7 percent could mean an additional $3.59 per month – and the increase is retroactive to June 1.
Adding to the conversation of the energy issue within the city, Mayor Mike McCauslin had strong words regarding the Southeast Berrien County Landfill Authority's refusal to share revenue with owners of that landfill after plans are completed for a unit to convert methane at the landfill into electricity. "I would urge every one of these council members," said McCauslin, as well as the public to contact the landfill's board and express that such withholding of revenue is "unacceptable."
McCauslin said that at a meeting regarding the future revenue, the landfill's board president stated on the record that those monies would stay at the landfill. "And they're not sharing it with anyone," McCauslin said. "Even thought we have the absolute responsibility for that landfill."
Finally, proposals for new light bars, ammunition and digital patrol car equipment for the Niles City Police department were approved.
Police Chief Ric Huff received acclamation for using grant funds carefully – avoiding the need for additional money from the city. Proposals were also approved for a video surveillance system to be used by the Utilities Department as well as the use of grant funds by Residential Services of Southwestern Michigan to conduct an Analysis of Impediments to Fair Housing.
And praise was given by many of the council members to the people behind the Niles Bluegrass Festival for this year's event.