AKRON, Ohio — Akron leaders are speaking out against a drastic rate hike proposed for Dominion Energy customers. The utility company, which is in the process of becoming Enbridge Gas Ohio, is asking regulators to approve a 30% increase on its basic service charge. The change would take effect sometime in 2025.
While the request is going through a rigorous regulatory process, it has drawn concern from customers and consumer advocates.
“People don’t have 30% more money to pay for gas. They’re going to have to give up something. If they’re on a fixed income, they’re going to have to give up something,” Jan Dawson told News 5.
The Akron retiree wrote a letter to the Public Utilities Commission of Ohio (PUCO), calling the proposed service fee hike a “hardship.” She believes a major change in price would be difficult on budgets already straining under inflation and other costs.
“In the last year or so, what I paid $50 for I now pay $75. You buy the standard items for meals and that is a big impact. Gasoline is another thing. I just saw it went up again,” she said.
Regardless of gas usage, the average household customer currently pays a flat monthly fee of about $43.30. Dominion is proposing raising that service fee to $56.34.
“I’ve been at the agency for probably 25 years. I don’t think I’ve seen a 30% increase. I’ve said I don’t want to see another one,” said Maureen Willis, the agency director for the Ohio Consumers’ Counsel.
The independent state watchdog agency issued a consumer alert about the proposed rate hike, advocating for affordable and safe natural gas service.
Willis said on top of the 30% service fee increase, consumers could also expect add-on monthly charges, known as “riders.” Dominion is proposing a $8.78 per month rider this year, with more add-on charges of up to $29.69 per month by 2032.
The agency says the total increase, if approved as proposed, would cost a typical residential consumer more than $100 a year.
“In order to stay connected to gas service, you have to pay the bill,” Willis said. “Gas service is an essential part of people’s lives.”
The consumer alert prompted the Akron City Council to unanimously approve a resolution opposing the rate hike and calling on PUCO to reject Dominion’s proposal.
“I believe that our residents should not bear an increase,” Ward 7 Council Member and Public Services Committee Chair Donnie Kammer said during Monday’s city council meeting.
News 5 reached out to Dominion/Enbridge for comment.
“We understand and appreciate the concerns raised by the City of Akron regarding Enbridge Gas Ohio’s rate case filing with the Public Utilities Commission of Ohio. We value public engagement as an important component of the regulatory process,” a spokesperson told News 5 via email. “We understand that affordability is a priority for our customers, and we are committed to working with them to find affordable payment plan options.”
The company explained the basic service fee is only one part of a customer’s bill.
“If the company's application is approved as filed, it will not have a 30% impact on the customer bill; the total bill impact is projected at around 16% of the average residential bill. It’s important to focus on all the changes proposed, rather than select portions of the bill,” the spokesperson said.
The company said the proposed increase to consumers would recover the remaining $1 billion of more than $4 billion it invested in infrastructure projects, like pipeline replacements and meters. Additionally, it said the new money would help offset increased property taxes and rising labor, material and construction costs.
According to Dominion, it has not asked for a rate increase since 2007.
The Consumers’ Counsel said while it may be true the company has not gone through the formal regulatory process with PUCO in that time, consumers have been subject to rising prices over the years.
“To say they haven’t had a rate increase in 10-plus years is misleading because consumers have been paying these add-on charges,” Willis said.
Meanwhile, customers said they would struggle to afford any major future changes.
“You can just keep hitting us like that. It’s just too hard,” Dawson said.
The agency is encouraging customers to file a public comment with PUCO as the commission weighs Dominion’s request. You can click on this link for detailed instructions.
Currently, PUCO is analyzing the company’s request and will put out a report soon. Then, a series of public hearings will take place throughout Dominion’s service area. The hearings have not yet been scheduled.
The Consumers’ Counsel will represent customer interests in the case. PUCO could decide on the case by fall 2024. Dominion said any changes would take effect in 2025, after the winter billing cycle.
You can find more customer information from the company by clicking here.
