About half of the increase is attributable to the kilowatt-hour tax, which is paying for street resurfacing and temporarily funded salaries for police officers, said Doug Childs, city manager of energy services.
“Several factors have allowed Hamilton to control its costs much better than the average investor-owned utility or municipal system,” Childs said.
Those factors include being a nonprofit energy producer and distributor and not having shareholders to pay dividends. Plus, the city has “less fuel price risk” because 40 percent of its energy is generated from its own hydroelectric plant in Greenup, Ky., Childs said.
“All of the increases for this period were the direct result of cost pass-through items beyond Hamilton’s control,” he said.
The average Ohio residential price for electricity jumped 33 percent to 11.32 cents per kilowatt hour in 2010, up from 8.51 cents in 2005, according to U.S. Energy Information Administration data. That rate is below the 2010 national average of 11.54 cents per kilowatt hour.
Local energy company officials attributed the recent price hikes to increased costs for power distribution and meeting environmental limits, among other factors.
Customers also could be seeing higher electric bills because of increased home use of computers, large-screen televisions and other electrical devices that use more energy, said Mark Durbin, a spokesman for Ohio Edison.
“If somebody had a bill from five years ago or even 10 years ago they would notice that they are using more kilowatt hours per month, which would translate obviously into a higher electric bill,” Durbin said.
Area customers typically use between 750 to 1,000 kilowatt hours of electricity per month, officials said.
Resident Teresa Campbell has seen a “noticeable” increase of about $10 a month in her electric bill over the last several years. Campbell has run the same appliances as usual, but “the bill has been a little higher,” she said.
The higher cost for electricity has forced Campbell to cut back on her budget. “I am more conscientious of turning off the lights and unplugging things,” she said.
Ohio Edison rates increased 4 percent from 2005 to 2008, but are now 2 percent below 2005 rates, Durbin said. He attributed the reduction to lower electricity generation rates from alternative suppliers in an open market.
Electricity deregulation in Ohio took effect in 2001 but the system has since been revised several times. The Public Utilities Commission of Ohio has oversight of utility rates, but permits retail competition.
Ohio’s residential sector consumes about one-fourth of the state’s electricity, with nearly one-fifth of Ohio’s households relying on electricity as their primary source for home heating, according to the Energy Information Administration. Coal typically fuels close to nine-tenths of net electricity generation in Ohio, EIA officials said.
Coal is used to generate the majority of Dayton Power and Light’s electricity and increased costs for the fossil fuel were a factor in the company’s higher electricity rates, said spokeswoman Lesley Sprigg.
State-imposed energy efficiency standards and renewable mandates that started in 2009 accounted for an additional 5 percent increase in typical residential bills, Sprigg said.
“We work to hold or reduce those costs that we can control to ensure affordable electricity for our customers,” she said.
DP&L’s average residential rate increased from 9.4 cents per kilowatt hour in 2006 to 13.11 cents so far this year, according to Sprigg.
Duke Energy officials also cited increased fuel and environmental costs as factors in their residential rates, which jumped from 9.81 cents per kilowatt hour in 2006 to 13.49 cents in 2010.
Duke Energy customers should see lower rates starting in January after a three-year rate plan for the supply and pricing of electric generation service expires on Dec. 31, said Sally Thelen, a company spokeswoman.
The previous rate was approved before the economic recession, when there was higher electricity demand from large industrial customers, she said.
“We are anticipating an average residential customer that uses 1,000 kilowatt hours on average a month is going to see an 11 percent decrease, or $14 on their bill,” Thelen said.
The wholesale price of electric power has been lower at recent energy auctions because of “an excess glut of generation on the market, so that has translated into lower prices for consumers who choose to shop,” Durbin said.
Ohio Edison’s current residential rate is 11.25 cents per kilowatt hour, down from a high of 12 cents in 2008, Durbin said.
Durbin said people can help lower their electric bills by reducing energy use at home, such as turning off computers and televisions when they are not in use.
“When you look at the big picture, bills might be going up but maybe it’s because people are using more of the commodity,” he said.
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