Wyandotte Residents Soon to Pay More for Electricity

Beginning Oct. 1, Wyandotte residents will be paying slightly more for electricity.

The Wyandotte Municipal Services Commission voted unanimously Tuesday to approve a new rate schedule, which includes increasing residential rates.

An increase of 3.38 percent will take effect on Oct. 1, with another hike of 3.27 percent effective April 1.

Melanie McCoy, general manager of , said the average monthly residential bill is $87, based on 600 kilowatt hours of usage.

The scheduled increase would bump that average up to $91 in October and then up to $94 in April 2012.

The decision came after the commission’s annual reevaluation of rates. The increase was necessary to help offset the costs associated with providing electricity, McCoy said.

“Every year we look at our rates and we look to see if it’s the right time to make a rate adjustment,” McCoy said. “We try and adjust our rates toward costs of service.”

As part of the new electric rate schedule, however, most commercial customers will see a decrease in charges. Businesses have been charged more to help subsidize residential costs, but that is no longer a feasible option in the current economic climate, McCoy said.

"As with other utilities in Michigan, businesses have been paying higher rates to keep residential rates lower," McCoy wrote in a letter to city officials announcing the rate change. "As the business environment has become more difficult, it is no longer possible to have businesses subsidize the residential customers."

The commission plans to next evaluate water rates in the city, McCoy said.