Council to consider adjusting electric, water and sewer

Niles utilities customers can expect to see rate increases across the board for all utilities starting as early as Dec. 1.

A study of the city’s electric, water and wastewater/sewer divisions presented to the city council Monday found that all are in need of a financial boost.

Utility Financial Solutions is recommending a 6.5-percent increase on average for electric utility customers, a 5-percent increase for water utility customers and a 4-percent increase for wastewater/sewer customers.

Utilities Manager Jeff Dunlap said the city’s prices remain competitive with other municipalities.

“We are probably on the low end considering we provide a full service to the community,” he said.

Using data provided by the city, an average customer would see his or her monthly bill go from $119.02 to $127.76, water customer $22.53 to $23.65 and wastewater/sewer $23.21 to $24.14.

Dunlap said the council could consider the rate adjustments as early as its first meeting in November. Rates could go into effect by early December.

Dunlap said the increase in electric rates is needed mainly because it will cost the city between 9- and 14-percent more to purchase electricity wholesale from AEP next year.

“We are going to pass that through as a 6.5-percent increase,” he said.

The need for an increase in water rates, Dunlap said, can be attributed to an aging infrastructure, capital improvement projects and heavy maintenance and repair costs sustained during the difficult 2013/14 winter. Dunlap said the city experienced more than 40 water main breaks and 193 frozen services last winter.

“All these expenses have slowly depleted our cash balances,” he said.

The increase in wastewater/sewer rates is needed because of aging infrastructure, according to Dunlap.

Niles last raised electric rates in September 2011, water rates in October 2013 and wastewater/sewer rates in October 2013.