GENEVA – Geneva electric customers will no longer have higher rates during summer peak usage hours, as aldermen recommended an amendment to the city code for a flat rate all year for all classes of electric users, residential, commercial and industrial.
The change will result in a 6.5 percent rate increase to all classes of electric users, officials said.
Acting as the Committee of the Whole on Monday, aldermen unanimously approved the change, following the presentation of an electric rate study by Gary Price of Price Consulting Services, Inc.
The change goes into effect once the City Council takes final action to approve it.
Public Works Director Dan Dinges said the effect will be that peak and nonpeak usage will be calculated the same way every month.
"During the summer months, your [bill] will be actually less, because your rate is less," Dinges said. "But from October, your rate is not going to drop like it did in the past. It's going to be up above the nonpeak, but lower than the peak."
Like most electric utilities, the city's peak rate is from June through September with a lower rate October through May, he said.
The flat rate reflects electricity's production cost adjustment into the base rate to electric customers, officials said.
Price reviewed Geneva's electric utility rates comparing its current rate, the cost of different rate classes, seasonal rates and flat rates and large industrial rates, among other aspects, he said.
The study was done before Prairie State Energy Campus, where Geneva gets about half its power, raised its rates, Price said, but including it later did not change the outcome of the increase.
The rate study also compared Geneva's rates to other municipal utilities, ComEd and aggregates.
"Geneva rates are very competitive, I'd say, relative to others," Price said. "Geneva's present and future rates lead the pack."