'Undue financial burden': Akron City Council opposes proposed Dominion rate hike

Dominion Energy Ohio wants to raise its distribution rates by 30%, but Akron City Council isn't on board.

On Monday, with the support of the mayor's office, council voted 12-0 to pass a resolution that opposes the rate hike and asks the Public Utilities Commission of Ohio (PUCO) to decline Dominion's request. Ward 5 Councilman Johnnie Hannah was absent from the meeting.

The resolution states, "Large rate increases in natural gas distribution service may negatively impact the City's efforts to attract new business and jobs, depress the housing market, and place an undue financial burden on residents."

In addition to increasing the fixed basic service charge for natural gas distribution from $43.27 to $56.31, Dominion — now in the process of becoming Enbridge Gas Ohio — hopes PUCO will also approve an additional monthly "add-on" charge of $8.78 that could increase to as much as $29.69 per month by 2032.

Regardless of how much natural gas a customer uses, they'll have to pay the flat $56.31 fee.

“I believe that our residents should not bear an increase, especially when it’s 30%," said Ward 7 Councilman Donnie Kammer.

During the public service committee meeting, Public Service Director Chris Ludle said the rates increase would negatively impact residents and commercial entities alike.

Ohio Consumers' Counsel (OCC), an independent state watchdog agency, said the rate hike will cost Dominion's 1.2 million Ohio customers over $100 more per year. Enbridge said that, if approved, the rates won't go into effect until early 2025.

According to a statement on its website, Dominion is asking PUCO to approve the rate increase because it needs to pass the cost of its infrastructure updates on to consumers.

"Over the last 16 years, Dominion Energy Ohio has invested more than $4 billion in its system infrastructure, of which roughly $1 billion has yet to be recovered in natural gas distribution rates.

"This investment in infrastructure, which includes replacement of pipelines, meters, and other operational assets, has increased our property taxes and other expenses as well. In addition, since our last rate case was filed in 2007, operating and maintenance costs, such as labor, material, and construction expenses, have risen substantially."

Consumers' counsel calls proposed rate increase 'extremely high'

Representatives from the Ohio Consumers' Counsel appeared before City Council on March 25 to talk about the increase.

Maureen Willis, the OCC's agency director, said Enbridge's claim that it hasn't increased its rates since 2007 isn't entirely truthful. While it hasn't asked PUCO for permission to raise its distribution costs in 16 years, add-on charges have been increasing annually, Willis said.

When utility providers ask for certain rate increases more frequently than once every 16 years, she said, it prevents the sudden spike in cost Ohioans might now have to endure.

"I will say, in my experience at the OCC I can't recall in my 25 years that I've worked for the consumers that I've seen a 30% increase," Willis said. "A 30% increase is extremely high, not seen it before, hope not to see it again."

Ohio consumers voice opposition to proposed natural gas hike

There are multiple ways for residents to let PUCO know what they think about the rate hike.

People can write a letter to PUCO, referencing case #23-0894-GA-AIR.

By law, any municipality with a population greater than 100,000 consumers must hold a public hearing. PUCO sets the hearings, but it hasn't done so yet.

The OCC has requested a virtual public hearing, a measure that Dominion opposes. PUCO hasn't made a determination on the request.

Additionally, people can file their comments with PUCO here: https://tinyurl.com/rateincrease23

Ohioans are already filing comments with PUCO protesting the proposed rate hike,.

Katherine Blazick wrote: "Dominion Energy has a monopoly in my area, so I have no choices to change my gas provider. I should never have to pay an ransom for a basic utility."

Janet Dawson wrote that the increase would be a "hardship" on her because she's retired and on a fixed income.

Darnell Richards was likewise concerned about the effect that higher rates would have on older retired people like himself, calling the proposed raise "unfounded and a down right scam on the people!"

"Dominion's 30% rate increase is nothing but corporate greed," David Shinn wrote. "In a time when most people are struggling to make ends meet, this is pure greed. Turn down this request."

Contact reporter Derek Kreider at DKreider@Gannett.com or 330-541-9413.

This article originally appeared on Akron Beacon Journal: Akron City Council opposes proposed Dominion natural gas rate hikes