UTILITIES Youngstown Thermal settles for 7 percent increase

THE VINDICATOR, YOUNGSTOWN
A 9 percent rate increase was first sought from council's utilities committee.
By ROGER G. SMITH
CITY HALL REPORTER
YOUNGSTOWN -- Youngstown Thermal started the night looking like it would get just 5 percent of the 9 percent rate increase it wanted.
Twenty minutes later, however, city council's utilities committee changed its mind and voted for a 7 percent increase instead.
If that's what's approved when the full council meets next, the company can live with it, said Carl E. Avers, chairman of Youngstown Thermal.
Avers was still disappointed the committee wouldn't go for the whole amount but not as much as if it had stuck to its first idea.
Heat supplier: Youngstown Thermal supplies steam heat and cooling to many buildings in and near the city's downtown. The company got 5 percent increases the past couple years after freezing rates for 12 years.
High gas prices last year, however, drove the request to 9 percent, Avers said.
"We need to recoup the cost of running the system," he said.
None of the three committee members -- chairman Ron Sefcik, D-4th, Rufus Hudson, D-2nd, and Mike Rapovy, D-5th -- would offer a motion for the full amount. Two of three pitched 5 percent instead.
High rates will drive businesses away from downtown, instead of attracting them, and the increases are piling up, they said.
Artis Gillam Sr., D-1st, whose ward includes downtown, persuaded his colleagues, however, that the company needs the increase.
Lower than others: Avers pointed out that Youngstown Thermal's rates would remain substantially lower than surrounding suburbs and big cities, such as Cleveland, even with a 9 percent increase.
The company needs to advertise that fact because the perception is otherwise, committee members said before arriving at the 7 percent figure.
Less revenue won't hurt operations drastically this year, Avers said. If 7 percent is the rate which is approved, Avers said he will have to factor the 2 percent shortfall into the company's increase request in 2002.
rgsmith@vindy.com