More utility increases ahead for residents

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Galion City Council on Aug. 13 discussed raising electricity rates in the city to prepare for expected increases in the cost of power.

Over the next two years, the City expects that the Power Cost Adjustment (PCA) could add as much as $8.30 per month to the average household’s electricity bill. To ease residents into this increase, Auditor Brian Saterfield suggested the council consider gradually raising the PCA now, rather than waiting for a larger jump later.

Since the higher prices will inevitably affect Galion, Saterfield told the council that a slow increase may be less shocking than a larger increase down the line.

Saterfield clarified to the council that this is not a Galion-only issue. PCA prices across the East Coast will be going up over the next couple of years. Mayor Tom O’Leary pointed out that while energy needs are increasing, he hasn’t seen any energy plants expanding, suggesting one potential cause of the price increase.

The current PCA is $0.01096 per kilowatt-hour (kWh). One proposed plan suggests raising it to $0.01008 per kWh by Sept. 1, then to $0.01296 per kWh in March, and finally to $0.02181 per kWh in September of next year.

In the alternative scenario, rates would increase to $0.01250 kWh this September, then to $0.01350 kWh in March, and finally $0.01850 kWh next September.

The council decided to delay any voting on the ordinance until members have had more time to review the options and consider the impact on residents.

Hannah Bryan is a correspondent for the Galion Inquirer. She can be reached at [email protected].

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