.Explanation
BACKGROUND
This ordinance authorizes an increase in electric rates effective January 1, 2025 for the Division of Power and amends Chapter 1163 of the Columbus City Codes, 1959. This ordinance also authorizes the Director of the Department of Public Utilities to implement a new low income adjustment and updates the senior citizen adjustment. Finally, this ordinance changes the Sewer and Water Advisory Board to include a representative of the Division of Power, assigns it review of electric rates, and renames it the Utility Advisory Board.
The Division of Power provides electricity services to approximately 18,000 customers, 15,000 of which are residential, and maintains approximately 55,000 street lights throughout the City. The Division of Power purchases its power from public and private utilities and resells the electricity wholesale to its customers; it does not generate any electricity. The Division of Power’s closest competitor locally is American Electric Power (AEP).
The Division of Power has not raised rates for the majority of their customers for over ten years. The Division of Power customers are divided into four (4) major categories - Residential, Small Commercial, Commercial, and Industrial. The current commercial and industrial customer rate structures for Rates 20, 20A, 22, 22A, 23PP, and 39 have been in place since 2016 in accordance with Ordinance 2132-2015, passed November 23, 2015. The current residential customer rate structures for Rates 10 and 11 have been in place since 2013 in accordance with Ordinance 2398-2012, passed December 3, 2012. The current commercial and industrial customer rate structures for Rates 23P, 23S, and 31 has been in place since 2007 in accordance with Ordinance 1911-2006, passed November 20, 2006.
The Department of Public Utilities conducted a financial study that included a revenue needs assessment, a rate competitiveness assessment, cash reserve level evaluation, and a capital investment needs...
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