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Council hears Glenwood Energy rate proposal, staff flags higher fixed meter charges for low‑usage customers
Summary
Council reviewed Glenwood Energy’s application to amend its gas rate ordinance; staff said proposed increases to fixed meter charges could raise bills for low‑usage households even if per‑unit rates fall, and the ordinance will return for vote after further review.
City staff presented Glenwood Energy of Oxford’s application to amend the ordinance that governs the company’s gas rates during a first reading on March 10. The application includes proposed increases to the monthly fixed meter charge for residential and commercial customers and an adjustment to the general service rate.
Staff described the primary revenue components of the company’s application — a gas cost recovery (GCR) rate passed through to customers, a fixed monthly meter charge and a general service rate — and said the proposed structure was generally consistent with Public Utilities Commission of Ohio rate‑making principles. The staff report noted that Glenwood proposed raising the residential fixed monthly meter charge from $14 to $22 in year one and to $28 in later years, while the general service rate would remain at current levels under the tentative agreement.
Staff warned that increases to a fixed meter charge have a disproportionate effect on low‑usage customers; staff provided an illustrative example in which a homeowner using roughly 80 MCF per year would see an annual bill increase of about $96 (around $8 per month). Council members probed inconsistencies in the staff report language and were told the company originally proposed a mix of higher meter charges and lower per‑unit charges, which staff negotiated to a tentative agreement.
Members noted that if the city and Glenwood do not reach agreement, Glenwood may apply to PUCO. City staff said they have historically been able to negotiate settlements without the need for a PUCO filing. The ordinance will return for further consideration and possible adoption at a later meeting.
