Facing rising costs and necessary improvements, the Village of Richmondville Electric Department is proposing its first rate increase in more than 20 years.
A meeting to explain the rate increase will be at the Richmondville Firehouse this Saturday at 10am, and village officials are encouraging all customers to attend.
Richmondville Power & Light is already known for its relatively inexpensive power, and the 15-percent increase would still keep it below the rates National Grid charges in neighboring towns, Superintendent Bruce Stevens said.
A National Grid customer himself, Mr. Stevens said the increase would still keep Richmondville’s rate at less than half National Grid’s.
Typical Richmondville customers would see their rates rise by about $5 to $10 per month, he said.
Even with the increase, Richmondville’s charges would be comparatively inexpensive, village Mayor Kevin Neary said.
“It’s less than one cent per kilowatt hour,” he said. “We’re still providing cheap power. It’s very reasonable.”
Mr. Stevens said Richmondville’s last rate increase came in 1987.
“That’s more than 20 years ago,” he said. “The cost of operation is up substantially–-fuel, labor, everything.
“We’re facing the same increases everyone else has, and we’ve absorbed them for 20 years by growth. But the last couple of years, it’s been stagnant.”
Also, Mayor Neary said, the Electric Department pays taxes on its lines outside the village, and those taxes are up sharply.
The hike is also necessary to accommodate improvements to lines and equipment, Mr. Stevens said.
And, he added, the Electric Department has shown a loss the past two years.
“You can only lose so long before you raise the rates,” Mr. Stevens said. “We’ve done all we could.”
Richmondville Power & Light is preparing documentation to have the Public Service Commission approve the increase. If the PSC does so, the hike would go into effect September 1.
The PSC would have another public hearing before then, but Mayor Neary wants customers to attend Saturday’s session.
“We’ve had a few people comment, but we’re really encouraging people to turn out Saturday,” Mayor Neary said. “If they have any concerns, we’ll open the books and explain the process.”
Richmondville Power & Light has 1,100 residential, commercial and industrial customers, Mr. Stevens said. It serves the village and about 60 percent of the Town of Richmondville.