By JONATHAN SNYDER
Increases to electric rates over the next five years were introduced by the Common Council Tuesday.
Due to recent federal regulations of electric power acquisitions, Bluffton’s electric provider, Wolverine Power Cooperative, announced that they will be raising their rates in 2030. Wolverine estimated the increase at 6-7% compared to their previous locked rates, approved in 2018. Throughout the city’s transmission region — which covers areas in Ohio, Kentucky, Pennsylvania, Virginia and others — some coal and gas fired plants are being removed from auctions, the traditional method for purchasing electric capacity.
“There has to be a gas plant to take that gas and convert it to electricity,” council member Scott Mentzer said. “The cost to build gas plants — because of some of the regulations that have been put on — are so significantly high that people aren’t investing in new gas plants. The way to drive down cost is by increasing capacity … and right now, it’s not very cost effective for these energy providers to build plants.”
In response, the city has introduced a five-year plan where rates will increase from 2025 to 2030 and settle into a rate stabilization fund. When the major increase happens in 2030, the funds in that account will give the city a buffer to keep rate increases steady from 2030 to 2035 when they establish a new contract with Wolverine. The fund is not allowed to be used for any other electric department projects, and will only be used for keeping rates down.
“In essence, if you’re paying them (Wolverine) the 6-7% increase you can do the same thing,” Baker Tilly representative Eric Walsh said to the council. “You’re just taking control and doing it yourself.”
Council member Chandler Gerber asked if those increased rates were tested against other providers, with Mentzer assuring that even at the accelerated rates, Wolverine still provided the best deal. Ben Murray also asked if the fund will gain interest over those years, which Walsh and Mentzer confirmed that interest will accrue.
Walsh, who has advised the board on the upcoming increase, stated that year one of the increase will primarily impact significant demand customers like Valero and other similar high-use businesses. Walsh estimated that the city would need at least $7 million in the stabilization fund by 2030 to keep rates below a 3% increase year over year.
The current rates being proposed start at $3.90 per meter per month and $0.097 per kilowatt hour for the first 500 kilowatt hours for residential services in 2025, which will increase to $4.50 per meter per month and $0.109 for the first 500 KWH hours in 2029. Commercial services rates will start at $7.75 per meter per month and $0.117 per KWH for the first 500 KWH in 2025, increasing to $8.80 per meter per month and $0.132 per KWH for the first 500 KWH in 2029.
“This is probably the most proactive approach you can make,” Walsh said. “I think it gives the citizens the lowest cost of power option.”
The council approved the ordinance on first reading, with a public hearing on the new rates scheduled in two weeks.
Additionally, the council denied BCG Capital and Minnich’s rezoning request. Wells County Area Plan Commission Executive Director Mike Lautzenheiser said that recent findings show that a majority of BCG’s and Minnich’s planned uses for 1590 and 1600 West Washington St. fall under business three zoning and light industrial zoning classifications.
The planned light industrial zoning for BCG and Minnich drew concern from council members at their Nov. 19 meeting, who stated that the residential housing and parks near the area would lead to a poor fit for light industrial zoning. Lautzenheiser suggested that the council deny the light industrial zoning petition, and notified that a new petition for B-3 zoning will be at their desks in January.
Furthermore, Solid Rock Rentals’ rezoning request was also denied after Lautzenheiser reported that petitioner Drew Gerber requested they be turned down. Lautzenheiser also reported that Solid Rock is scrapping the planned project, which called for 25 units of rental housing east of Serenity Trail.
Trash rates were also approved by the council, with Republic Services’ rates starting at $20.86 per month per household in 2025 and will rise yearly until they reach $24.15 in 2028.
Additional appropriations were also approved — $1,000 towards the TIF Midland 2’s economic development bond line item; $19,500 split between the Animal Shelter’s utilities, salaries, medical insurance and repairs and maintenance line items. Clerk Treasurer Bri Lautzenheiser stated that salaries were miscalculated due to a new intern for the shelter in 2024.
Earlier Tuesday, the Board of Public Works and Safety approved the purchase of pool chemicals from SPEAR Corporation. Parks Department Superintendent Brandy Fiechter said that an annual sale on chemicals ends this Saturday, and the total spending amount is estimated at $42,117.70.
The Board of Works also approved a $263,807.50 SRF Request to the James S. Jackson Construction Company. Clerk Treasurer Bri Lautzenheiser noted that this payment will make the retainage balance whole for Jackson.
jonathan@news-banner.com
