Geneva council OKs series of 3 electric rate hikes

GENEVA – The Geneva City Council voted Aug. 7 to approve the recommended three electric rate increases intended to cover the utility’s fixed costs and debt.

Alderpersons voting as the Committee of the Whole on July 24 had approved changing the rate structure to eliminate block rates and institute a single rate per kilowatt hour for the energy charge. They favored a proposed blended energy rate as it made the increase more equal among the rate classes.

In addition to maintaining the utility’s infrastructure, the rate increases are needed to pay off $30 million in bonds the city borrowed to build more substations for the industrial areas on the city’s east side, officials said.

Alderpersons also heard presentations on the electric utility in January and July 3.

The average charge for residential electricity is $107.06, according to an earlier rate presentation. That includes $100.31 for the electricity itself and $6.75 for the customer charge.

The first increase will go into effect in November and go through April 2025. It raises the customer charge to $8 from $6.75 and sets the energy charge at 11.2 cents for the first 500 kilowatt hours, documents show.

Residential users would see their energy charge go down to 11.2 cents from 11.3 cents, documents show.

A kilowatt hour or kWh is a unit of energy equal to one kilowatt of power sustained for one hour and is commonly used as a billing unit by utilities. A kilowatt or kW is a measure of the rate of electricity used.

Residential customers who use more than 500 kilowatt hours will see an increase in their rate of 10 cents per kilowatt hour to 11.2 cents, records show.

Commercial and industrial customers will see increases in their customer charges and rate structure.

The rest of the rate increases will go into effect from April 2025 to April 2027 and from April 2027 to April 2028, records show.

The kilowatt hour charge will increase to 11.6 cents and then to 11.9 cents.

The customer charge will stay at $8 for residential users.

The full rate package is available on the city’s website at www.geneva.il.us.