By By JOHN EBY / Dowagiac Daily News
City Council gave first reading Monday night to an ordinance adjusting electric rates to reflect the 87-percent increase in the cost of wholesale power paid by Dowagiac under terms of its March agreement with AEP.
Under the proposed phased approach to raise rates, the utility will experience operating losses that are projected to be covered in part by the additional 6-percent electric rate increase the council passed last May.
The proposed overall rate increases will be phased in: 26.5 percent April 15; 2 percent May 15; 2 percent (compounded), June 15; 2 percent (compounded), July 15; 2 percent (compounded), Aug. 15; 2 percent (compounded), Sept. 15; and 2 percent (compounded), Oct. 15.
The city's current agreement with AEP took effect March 1.
Rate adjustments would be reflected on bills mailed in April.
Interim City Manager Rozanne Scherr said individual rates for each customer and customer class will vary slightly.
Some customers, for example, might see a 28.4-percent increase.
Others may see a 25-percent increase, depending on the type and amount of electric used.
She said the average residential bill of $104 would increase by about $27 per month.