CMU Dropping Electric Rates
Thursday,
January 8, 2009, C-T
CAPTION:
Doug Assel, meter reader for Chillicothe Municipal Utilities, reads an electric meter on Cherry Street Thursday. CMU officials have announced a 3.2 percent rate decrease starting in January. Some customers will see even lower electric rates this winter because CMU has also now combined its two electric rates into one.
C-T Photo / Laura Schuler
All Chillicothe Municipal Utilities customers will be paying lower rates for their electricity starting this month following a 3.2 percent reduction. The reduction comes after a 3.2 percent increase which was implemented in October 2008.
CMU General Manager Steve Svec said that the cost for power has decreased, allowing for the rate decrease which was approved Tuesday during a regular meeting of the Board of Public Works.
“The purchase cost that we get our power for came in a little lower,” Svec explained. He added that customers will see the rate reduction on their January electric bills.
Svec said that some customers will see even lower electric rates this winter because CMU has also now combined its two electric rates into one. Prior to the board’s vote, CMU operated on two rates — one for electric heat customers and another for regular residential customers.
The winter rate for electric heat customers was approximately 30 percent lower than the rate for other customers. Now, however, all CMU customers will be billed at the lower winter rate if they use more than 1,500 kilowatt hours a month. The winter rates are effective now through April. As an example, the reduction means that customers who use 2,000 kilowatt hours a month would save around $15.19 on their monthly bills.
According to CMU officials, about 300 additional customers will benefit from the lower winter electric rate because of the rate combination. Currently, there are around 450 electric heat customers.
Svec explained that many people are now using non-permanent heaters for economical reasons. However, those customers (mostly those who heat their homes with gas) end up paying as much for their electricity than they would paying for gas.
“So, we’re trying to help that situation a little bit,” Svec said. “We thought it was the best thing to do for our customers.”
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