Extra electricity fees will stay, mayor says

AMP-Ohio wanted Niles to impose a larger power charge, the mayor says.
By TIM YOVICH
VINDICATOR TRUMBULL STAFF
NILES -- A 30 percent power charge added to city electricity customers' bills will continue at least until the end of the year, says Mayor Ralph A. Infante.
Even after the first of 2006, the mayor said, the charge might be reduced, but he can't say for sure it will be eliminated.
Infante told members of city council's utilities committee Wednesday afternoon that 2.4 cents per kilowatt hour were added to the 7.8 cents already being charged because, among other reasons, the price of power was increased by the city's supplier, AMP-Ohio.
Since January, Infante explained, the city has paid $17.1 million for power and collected nearly $16.2 million.
Budgeting for next year
Infante said the city will have to budget $23 million next year to buy electricity. He won't know how to pay for it until January or February when the city gets its bills from American Municipal Power-Ohio, a nonprofit electric-supply company.
Infante told the committee and some business representatives that because of the hot summer and increased production costs, AMP-Ohio couldn't generate enough electricity. Thus, it had to buy power on the expensive open market, he explained.
In addition to the higher cost of power, the city has experienced increased costs in operations, employee health care and maintenance. The added state tax on energy was another factor, he noted.
Placing blame
Councilman Frank Fuda, D-1st, utilities committee chairman, called the meeting because committee members were being blamed by residents for increasing their bills. The mayor imposed the power charge.
Infante said the electric fund has managed to keep a balance the past 18 months, though the cost of power to the city has "skyrocketed."
"We ate a lot of it last year," the mayor asserted, noting AMP-Ohio wanted the mayor to impose a 3.4-cent per kilowatt hour increase so the city could recover its losses.
Infante said he has tried to keep the fund in balance by stopping construction of two electric substations that would have cost a total $1.5 million.
Infante said customers unable to pay because of the new charge won't have their electricity cut off, and he indicated a budget program may be instituted.
Businessmen called attention to the increased rate on their companies.
Wants stability
Robert Hendricks, president of Niles Manufacturing & amp; Finishing Inc., said the situation must be stabilized so he knows how much to charge customers for his products.
"How are we going to deal with this?" Hendricks queried.
"We took it square on the chin with this one," said Dave Tyo, general manager of Dinesol Plastics Inc.
Tyo suggested that Dinesol be allowed to contract with the city for power or he will look for another provider.
"We can't afford to lose business," responded Councilman Thomas Scarnecchia, D-at large, adding that the city's electricity rate remains the lowest in the Mahoning Valley.
yovich@vindy.com