BY JANICE MORSE
The Cincinnati Enquirer
HAMILTON — City council is considering electric rate increases, which are viewed as essential for Hamilton to continue as one of only six Ohio cities that operate their own electric systems.
The increase for residential customers, which would total 4 percent over the next two years, is necessary, officials say, because the city owes $200 million debt for the utility.
One controversial report advocated that the city sell its utilities, because of the debt and because the city will face competition for its service as state and federal lawmakers continue deregulating utilities.
“We won't be able to operate as we had for the last 50 or 100 years,” City Manager Hal Shepherd told city council at a special meeting Wednesday. “We made the decision to stay in business, so now we're going to compete.'"
Competing is something Mr. Shepherd thinks the city can do well, given its reasonable rates and high levels of customer satisfaction.
Even with rate hikes, city residents and businesses will still enjoy lower rates than customers in Cincinnati and other communities, he said.
A typical residential customer in Hamilton now pays $57.83 per month, while the cost for CG&E residential customers is $61.10, a report says. If city council approves the proposed rate hikes, which are set for a third and final reading Dec. 28, the monthly cost would rise 2 percent in February, to $59.03. Another 2 percent increase would take effect Feb. 1, 2000, bringing the typical monthly bill to $60.17.
City leaders decided to keep the electric system under city control because of the benefits that come with owning their own system.
During brownouts last summer, Hamilton's electrical supply problems were minimal, Mr. Shepherd said. “We were the envy of a lot of communities,” he said.
This fall, a survey sent to the city's 25,000 customers was completed and returned by about 2,500 customers, which is considered a high rate of response.
About 80 percent of those said the city's on-premise utility service was “excellent” or “good.” However, 40 percent of the respondents did not know that the city's water, sewer, gas and electric services are not-for-profit, customer-owned utilities.
Public Utilities Director Richard J. Fleming previously said the results showed him that city officials needed to better market the utilities and better inform customers. He has urged the city to take advantage of the “opportunity to tell the city's utility story before competitors tell theirs.”
