Kokomo Tribune; Kokomo, Indiana

Breaking News

Local News

November 8, 2012

Peru electric rates could increase

Cost-of-service study says residents should pay more

Peru — Peru City Council is considering an ordinance that would increase electricity rates for city and county residents and lower rates for large power-consuming facilities served by Peru Utilities.

A recent cost-of-service study commissioned by the city says residents should pay on average 3.3 percent more for electricity, while rates for large companies and facilities — like Armour-Eckrich Meats, Square D Co. and the Miami Correctional Facility — would decrease on average 7.5 percent. Rates would also increase for commercial buildings by more than 4 percent.

Peru Utilities General Manager Roger Merriman said for homes that use 700 kilowatt hours a month, the rate increase comes out to an extra $2.21 a month. In total, residents will pay $300,000 more for power.

He said 11 facilities qualify for the lowered electricity rate, which currently pay in total $5.8 million for power. The new rate would lower that by $443,000.

Indianapolis-based Umbaugh & Associates Certified Public Accountants completed the 70-page study in September. Merriman said the city hasn’t commissioned a cost-of-service study in 20 years, and the current electric rates are out-of-date.

“From a rate-making perspective, the study is what it is,” he said, noting Umbaugh used objective standards to determine rates. “Peru Utilities doesn’t have any bias in this one way or the other.”

The last rate hike came in 2007, which increased electricity prices 9 percent across-the-board for all Peru Utility customers.

Merriman said the company brings in $21.5 million annually from electricity payments. The company services 95 square miles in Miami County, including parts of Grissom Aeroplex.

Council will vote on the rate changes during its regular meeting in December. A public hearing will be held before the meeting.

Carson Gerber is a Kokomo Tribune reporter. He may be reached by phone at 765-854-6739, or by email at carson.gerber@kokomotribune.com.

1
Text Only | Photo Reprints
Local News
  • North split restrictions on Monday The Indiana Department of Transportation will restrict traffic at the single-lane ramp that connects U.S. 31 to southbound Ind. 931 on the north side of Kokomo — weather permitting — on Monday between 9 a.m. and 4 p.m. Remedial repairs along the 200-

    April 16, 2014

  • BK rebuild 04 Peru restaurant B-K West rebuilding after tornado

    PERU -- B-K West is more than just a drive-in restaurant to its owner, J.D. Hann. It's a piece of his childhood, a historic Peru landmark, and it's his baby. "I grew up with this place," the 57-year-old Peru native said. "We used to walk the tracks o

    April 16, 2014 7 Photos

  • Congresswoman Susan Brooks backs manufacturing training efforts Congresswoman Susan Brooks' own personal manufacturing experience may have been limited to three months in a Kendallville caramel factory as a college student, but in her congressional roles, she's having an impact on the skills debate. In Kokomo Tue

    April 16, 2014

  • Superintendent of Ind Ed 01 State Superintendent Glenda Ritz visits Peru, discusses new standards

    PERU -- State Superintendent of Public Instruction Glenda Ritz said Tuesday she is comfortable with the quick pace at which new academic standards are moving from concept to classroom. The Indiana Department of Education released a final draft of new

    April 16, 2014 4 Photos

  • Chrysler CEO will headline Tipton plant opening Chrysler CEO Sergio Marchionne will preside over the grand opening of the company's fifth north central Indiana plant, the Tipton Transmission Plant, at a ceremony May 13, company officials announced Tuesday. In February 2013, Chrysler announced it w

    April 16, 2014

  • More than 70 businesses participate in annual job fair More than 70 local businesses got a look at the workforce of tomorrow during Tuesday's Kokomo Area Job Fair at the Ivy Tech Kokomo Event & Conference Center. The event, put on as a partnership between Indiana University Kokomo and Ivy Tech Community

    April 16, 2014

  • Kokomo episode of 'My First Home' airs Saturday A cautious cat-lover will search for the perfect house in Kokomo on Saturday's episode of "My First Home" on TLC. The episode airs at noon and features Kokomo real estate agent Gena Martin and first-time homebuyer Steven Underwood. In its description

    April 16, 2014

  • Easter basket workshop Thursday Generous individuals and businesses in town donated enough candy, games and books to fill more than 500 Easter baskets at this year's Tom Carey Easter Basket Workshop. The workshop starts at 10 a.m. Thursday. Any families that are strapped for cash t

    April 16, 2014

  • IUK to give Chrysler CEO Sergio Marchionne honorary degree Chrysler CEO Sergio Marchionne will be at Indiana University Kokomo’s May 13 commencement to accept an honorary degree from Indiana University President Michael McRobbie, IUK officials announced. In a statement, McRobbie credited Marchionne with engi

    April 15, 2014

  • Cheryl Marner aims to cross finish line during this year's Boston Marathon Cheryl Marner was a mile from the finish line at last year's Boston Marathon when all of the runners in front of her suddenly stopped. The race had come to a halt, and at the time, she didn't know why. "There was a lot of confusion," she said. "I hea

    April 15, 2014

Latest news
Featured Ads
Only on our website
AP Video
Parade
Magazine

Click HERE to read all your Parade favorites including Hollywood Wire, Celebrity interviews and photo galleries, Food recipes and cooking tips, Games and lots more.
Obituaries