GREENFIELD — Greenfield Power & Light customers will soon see a bump in their electric rates, which city officials say will equate to roughly $3.50 for the average household.
The Greenfield City Council voted unanimously to amend electric rates at its Dec. 13 meeting, with the change going into effect Jan. 1.
The rates have remained the same since 2018.
Officials said the rate hike would equate to an average 3 percent increase for the typical residential household using 1,000 kilowatts of power per month, including a 70 cent increase on the monthly base service charge.
District 3 Councilman George Plisinski said the increase was necessary to keep up with the rising costs of providing power.
“This modest increase for residential customers puts Greenfield Power & Light on a more-solid financial footing,” he said.
Plisinski said the initial rate hike ordinance was amended to remove the current two-tier residential energy charge, which disincentivized the adoption of electric water heaters, heat pumps and electrical vehicles.
“Under the new rate-structure these elements are neither incentivized nor disincentivized, and residents can make their own energy choices based on their needs with a single residential rate,” he said.
Only one person opted to speak during the public hearing that preceded the council’s vote to pass the rate increase.
Larry Silver, who ran as a Libertarian in last month’s mayoral election, asked the council not to pass it.
“No increase is good. What you’re doing is financially hurting the utility customers of Greenfield,” he said.
Consultant Buzz Krohn of Krohn & Associates then presented the council with a detailed account of why he thinks the rates set in 2018 can no longer sustain the rising costs of inflation.
“Power costs have gone up from our supplier,” he said.
The City of Greenfield pays the Indiana Municipal Power Agency (IMPA) a demand charge of roughly $23.50 per kilowatt and a little less than 4 ½ cents per kilowatt hour, said Krohn, which works out to a little over 9 cents the city pays per kilowatt hour.
“It doesn’t seem like that long ago we could buy power for 4-5 cents per kilowatt. Those days are over,” he said, adding that numerous communities are also facing increased rates.
“I can tell you a number of other utilities are going through similar studies right now. Our rates are still going to remain extremely competitive moving forward,” said Krohn.
The average Greenfield household now pays about $124.30 per month for 1,000 kilowatts of power, he said. With the rate increase, that bill will go up roughly $2.80 per month to $127.10.
That doesn’t include the 70 cent bump in monthly service fee.
Krohn said the increase would allow the city’s utility to stay on pace with the cost of supplying power throughout the city.
Any changes in the cost to obtain power from IMPA will be passed on to customers, he said.
The ordinance that was passed not only increased rates but unified rates for all residential and commercial customers, whereas commercial customers previously paid a lower rate and residential customers using over 2,500 kilowatts per month were charged a higher rate.
