PUBLIC UTILITIES Thermal's increase will be studied

Council hasn't followed a five-year rate schedule.
By ROGER G. SMITH
CITY HALL REPORTER
YOUNGSTOWN -- The city will explore whether it should entertain any rate increase request from Youngstown Thermal.
Council's public utilities committee will have the law director review state regulations indicating the city should set rates once every five years.
Legislation before council would grant the downtown steam heating and cooling company 2-percent increases each of the next five years. The increase this year would be retroactive to Jan. 1.
Thermal is seeking a 15-percent rate increase this year.
The city last approved a rate increase in 2001. That would mean no more increases until 2006 under the state law that outlines the five-year schedule, said Carmen Conglose Jr., deputy director of public works.
A rate increase now might be premature, Conglose said.
Council hasn't previously followed a five-year schedule. Thermal was granted 5 percent increases in 1998 and 1999, too.
Mark A. Butta, vice president of Youngstown Thermal, said the five-year schedule was new to him.
Financial situation
Thermal says the costs of natural gas, water, coal and employee benefits continue rising. Meanwhile, the company projects a $14,000 deficit this year even with a 15-percent rate increase.
Council members argue that downtown businesses can't afford such a steep increase.
Conglose also said it appears Thermal can appeal to the state Public Utilities Commission if the two sides can't agree on a rate.
Carol Rimedio-Righetti, D-4th, committee chairwoman, said the group will revisit the topic after fleshing out the legalities.
rgsmith@vindy.com